Apple has seen a big drop in iPhone sales in China, moving from the top spot to third place in the last three months of 2024. According to a report from Counterpoint Research, iPhone sales in China decreased by 18.2% compared to the previous year in the fourth quarter of 2024.
This left Apple with a 17.1% share of the market, behind Huawei with 18.1% and Xiaomi with 17.2%. Just a year before, Apple was leading with a 19% share. This is the first time since the U.S. banned Huawei that Apple has been outranked by a Chinese company.
Several reasons explain Apple’s struggles in China. One is the tough competition from local brands, and another is that Apple’s new “Apple Intelligence” feature, launched with the iPhone 16 in September 2024 in the U.S., isn’t available in China because of local laws.
Apple might work with Chinese companies to offer these features later. Meanwhile, Huawei has done well, growing by 15.5% thanks to AI in their Mate 70 and Nova 13 phones. The overall smartphone market in China also shrank by 3.2% in the same quarter, being the only period in 2024 with less growth.
Despite this, Apple held onto third place, with sales figures close to Xiaomi’s.
$AAPL – APPLE FALLS 2% TO $225.04 AFTER JEFFERIES CUTS TO SELL, LOOP TO HOLD
— *Walter Bloomberg (@DeItaone) January 21, 2025