During the third quarter of 2024, Apple managed to dominate the Chinese smartphone market. But it seems like the brand was overtaken by two domestic brands in the very next quarter. The iPhone maker saw a decline in Q4 2024, so here’s what we know so far.
Apple loses market lead in the Chinese smartphone market to Vivo and Huawei
According to a report from Canalys, the Cupertino based giant was dethroned by two domestic brands. Apple lost the lead to Vivo, who was the new market leader, and Huawei (the runner up). Huawei was the only runner up back in Q3 2024, but Vivo managed to surpass both brands the next quarter. In the Chinese smartphone market, Vivo took the lead with a 17 percent market share.
On the other hand, Huawei came with a 16 percent market share while Apple accounted for around 15 percent of the market. As per the report, Apple saw a decline in the Chinese market since the iPhones lacked support for functions from AI powered features. This made it less attractive to prospective buyers in the region, especially considering Chinese smartphones are packed with AI features. Considering how ChatGPT is banned in China, AI is quite crucial and is likely what led to the sizeable annual sales drop of 25 percent.
Due to this, the company recorded the worst annual sales in the Chinese market, according to Canalys senior analyst Zhu Jiatao. Apple’s market position also faces multiple challenges from its competition. He further added that Huawei has continued to launch flagship models while the number of domestic foldable phones in China has surged at high prices. Xiaomi and Vivo are also building consumer loyalty through technological innovation. So it’s no surprise that Apple is seeing stiff competition in the premium segment.
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