BEIJING: Apple was dethroned as China’s biggest smartphone seller in 2024, with local rivals Vivo and Huawei overtaking the iPhone maker after its annual shipments in the country declined 17 per cent, data from research firm Canalys showed on Thursday (Jan 16).
It was Apple’s largest-ever annual sales decline in China and involved contraction in all four quarters, including a 25 per cent drop in the final quarter, according to the data.
For the full year, budget smartphone maker Vivo captured a 17 per cent market share in China, followed by premium rival Huawei with 16 per cent and Apple with 15 per cent, demonstrating the growing sales pressure it faces from domestic manufacturers in one of its biggest global markets.
The decline also points to how factors such as the absence of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, are eating into Apple’s competitiveness.
“This marks Apple’s worst annual performance in China,” Canalys analyst Toby Zhu said.
“Apple’s premium market position faces multiple challenges: Huawei’s continuous flagship releases, the proliferation of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovations,” he said.
Apple had previously enjoyed four years of consistent growth following US sanctions that placed Huawei on an entity list in 2019, restricting its access to American technology.
But Huawei has made a strong comeback to the premium segment since August 2023, when it launched new phones with locally-made chipsets. The Chinese company posted a 24 per cent rise in shipments in the fourth quarter.
Apple did not immediately respond to a request for comment.
Source: CNA
