Apple was overtaken by local rivals Vivo and Huawei as China’s largest smartphone seller in 2024, following a 17% decline in its annual shipments, data from research firm Canalys showed Thursday.
The drop marked Apple’s largest-ever annual sales contraction in China, with declines in all four quarters, including a 25% fall in the final quarter.
Vivo captured a 17% market share for the year, followed by Huawei at 16% and Apple at 15%. The figures underscore the competitive pressure Apple faces in one of its biggest global markets, as domestic brands continue to grow. Analysts point to the lack of artificial intelligence features in Apple’s latest iPhones sold in China as a factor affecting its market share.
Huawei, previously constrained by U.S. sanctions in 2019, has made a strong recovery. The company launched premium phones with domestically produced chipsets in August 2023 and recorded a 24% rise in shipments in the fourth quarter. Xiaomi, focused on budget smartphones, showed the strongest growth among the top five vendors, with a 29% increase in fourth-quarter shipments, while Oppo and Vivo recorded gains of 18% and 14%, respectively.
Apple introduced rare promotions to boost sales, offering discounts of up to 500 yuan ($68.50) on iPhone 16 models through official channels during a four-day campaign in January. Major Chinese e-commerce platforms, including Alibaba’s Tmall, also launched promotions, with Tmall providing discounts of up to 1,000 yuan ($137) on the iPhone 16 series.
China’s annual smartphone shipments rose 4% year-on-year in 2024 to 285 million units, highlighting continued demand despite Apple’s challenges.
