Apple experiences a decline in smartphone sales in China
Huawei captures an increasing share of the chinese market while Apple experiences a decline in smartphone sales in China. Data indicated that iPhone sales in China for the quarter lagged behind the broader Chinese market performance. In the last quarter of 2024, Apple experienced a significant decline in smartphone sales in China, impacted by the rising appeal of domestic competitors such as Huawei, which are increasingly penetrating the premium segment, as reported by a prominent research firm.
According to Counterpoint Research, the fourth-quarter iPhone sales of the U.S. tech giant declined by 18% in the largest smartphone market globally, resulting in a third-place position overall, trailing behind Huawei and Xiaomi. In the corresponding period of the previous year, Apple held the position of the leading seller in China. Huawei, the Chinese competitor, ascended to the leading position for the quarter. Phone sales experienced a notable increase of 15.5%, bolstered by the introduction of the mid-range Nova 13 series and the premium Mate 70 series, according to senior research analyst Mengmeng Zhang.
“This marks the inaugural instance since the U.S. ban that Huawei has reclaimed the top position,” Zhang stated. Vivo, Honor, and Oppo secured the remaining positions in the top six for the quarter. The downturn in sales for Apple underscores the difficulties encountered by the most recent iPhone iteration amid intensified competition. Data indicated that iPhone sales in China for the quarter lagged behind the broader Chinese market performance.
During the quarter, smartphone sales in the country experienced a decline of 3.2% compared to the same period last year. The sole quarterly contraction observed in 2024 can be attributed to a more prudent approach to consumer spending, noted associate director Ethan Qi. Chinese consumers are missing out on the latest iPhone artificial-intelligence services, placing Apple at a competitive disadvantage relative to rival smartphone manufacturers such as Huawei, Honor, and Oppo, who are providing these AI capabilities.
Apple has engaged in discussions with various Chinese AI firms regarding a possible collaboration to introduce Apple Intelligence in China, as previously reported by The Wall Street Journal, citing informed sources. Sales by the second-ranked entity Counterpoint Research reported that Xiaomi experienced robust demand for its flagship Mi 15 series, with the success of its electric-vehicle initiative enhancing its brand image and contributing positively to smartphone sales.
As we look toward 2025, analysts at Counterpoint Research express a cautiously optimistic perspective regarding China’s smartphone market, forecasting low-single-digit sales growth amid prevailing economic challenges.
