Apple Inc. is set to lose its position as the top smartphone vendor in China in 2024, surpassed by domestic rivals Vivo and Huawei, after its annual shipments in the country fell 17%, according to a Reuters report.
It’s Apple’s biggest annual drop in China sales ever and includes a full-year decline, including a 25% drop in the final quarter of 2024, according to the data.
For the full year, Chinese budget smartphone maker Vivo had a 17% market share in China, followed by premium rival Huawei with 16% and Apple with 15%, indicating the growing sales pressure it faces from domestic manufacturers in one of its biggest global markets.
The drop also underscores how factors such as the lack of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, are hurting Apple’s competitiveness.
This represents Apple’s worst annual performance in China on record, said analyst Toby Zhou of Canalys.
“Apple’s position in the premium market faces multiple challenges, including Huawei’s continued flagship releases, the spread of homegrown foldable phones in high-priced segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovation,” he told Reuters.
Apple had previously enjoyed four years of consistent growth after US sanctions placed Huawei on the Entity List in 2019, limiting its access to US technology.
But Huawei has made a strong comeback in the premium segment since August 2023, when it launched new phones with homegrown chips, and the Chinese company reported a 24% increase in shipments in the fourth quarter of 2024, according to Reuters.
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