 "Research from Canalys reveals that Apple’s shipments in China dropped by 17 per cent in 2024, marking its largest-ever annual decline in the region. Image Credit: Reuters")
In a major shake-up in China’s smartphone market, Apple has been overtaken as the top-selling brand, with local manufacturers Vivo and Huawei climbing to the forefront. Research from Canalys reveals that Apple’s shipments in China dropped by 17 per cent in 2024, marking its largest-ever annual decline in the region. This downturn persisted throughout the year, with the steepest quarterly drop of 25 per cent occurring in the final months.
China, a crucial market for Apple, has traditionally been a stronghold for the iPhone maker. However, this decline underscores the intensifying competition from domestic brands like Vivo and Huawei, which are rapidly gaining ground. Once a leader in the premium segment, Apple now faces mounting challenges to retain its position in an increasingly competitive landscape where local players are proving to be formidable.
Vivo and Huawei surge ahead
Vivo emerged as the market leader in 2024, claiming 17 per cent of China’s smartphone market, while Huawei closely followed with a 16 per cent share. Apple, now third, holds 15 per cent, signalling a shift in consumer loyalty. Vivo’s rise is attributed to its cost-effective models appealing to budget-conscious buyers, while Huawei’s re-entry into the premium segment has put additional pressure on Apple. The growing dominance of Chinese brands highlights their ability to innovate and adapt to local preferences, a critical factor in this market.
Apple’s declining market share can be partly attributed to its inability to cater to some specific demands of Chinese consumers. The absence of advanced AI features in the latest iPhones and the lack of access to ChatGPT in China have diminished its appeal. According to Canalys analyst Toby Zhu, Huawei’s flagship launches, along with rising interest in domestic foldable phones, have helped build consumer loyalty for brands like Huawei, Vivo, and Xiaomi.
Huawei’s comeback and Apple’s response
Huawei’s resurgence is a major factor in Apple’s challenges. After years of struggle following US sanctions in 2019, Huawei bounced back in 2023 with smartphones powered by locally-developed chipsets. This move resulted in a 24 per cent surge in shipments in the fourth quarter of 2024, underscoring its comeback in the premium market. Huawei’s recovery has further intensified competition, leaving Apple scrambling to keep up.
In an attempt to revive sales, Apple introduced rare discounts on its iPhone 16 models. From January 4–7, the company slashed prices by up to 500 yuan ($68.50), with additional discounts of up to 1,000 yuan ($137) offered by e-commerce platforms like Alibaba’s Tmall. However, these measures highlight the growing pressure on Apple to adapt its strategies in China.
Chinese market rends: domestic brands flourish
Despite Apple’s struggles, the overall smartphone market in China saw a 4 per cent growth in 2024, with shipments reaching 285 million units. Domestic brands continued to thrive, with Xiaomi leading the charge with a 29 per cent increase in shipments during the fourth quarter. Oppo and Vivo also posted significant gains of 18 per cent and 14 per cent, respectively, reinforcing the dominance of Chinese manufacturers in their home market.
As the landscape evolves, Apple’s future in China will depend on its ability to innovate and align its products with local consumer expectations. Meanwhile, Vivo, Huawei, and other domestic players continue to shape the future of the Chinese smartphone industry.