Local rivals Vivo and Huawei overtook the iPhone maker as Apple's annual domestic shipments fell by 17%, data from research firm Canalys showed on Thursday. , was dethroned as China's largest smartphone seller in 2024.
This is Apple's largest annual revenue decline ever in China, which contracted in all four quarters, including a 25% drop in the final quarter, according to the data.
Apple stock fell 4% on Thursday.
For the full year, budget smartphone maker Vivo had a 17% market share in China, followed by premium rival Huawei with 16% and Apple with 15%, making it the largest domestic manufacturer in one of the largest global markets. This indicates that the company is facing increasing sales pressure from
The decline also shows how factors such as the lack of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, are eroding Apple's competitiveness.
“This is Apple's worst annual performance in China,” said Toby Zhu, an analyst at Canalys.
“Apple's position in the premium market faces multiple challenges, including Huawei's continued release of flagship products, the increasing penetration of domestic foldable phones in the high price range, and the rise of companies such as Xiaomi and Vivo,” he said. Android brands are building consumer loyalty through innovation.”
Apple previously had four years of consistent growth after Huawei was placed on the Entity List in 2019 and hit with U.S. sanctions restricting its access to U.S. technology.
However, Huawei has made a strong comeback in the premium segment since August 2023, when it launched a new mobile phone equipped with a domestically produced chipset. The Chinese company recorded a 24% increase in shipments in the fourth quarter.
Apple did not immediately respond to a request for comment.
iPhone makers have turned to unusual discounts to boost sales. The company launched a four-day promotion in China from January 4th to 7th, discounting iPhone 16 models by up to 500 yuan ($68.50) through official channels.
Major Chinese e-commerce platforms are following suit and rolling out their own promotions. Alibaba's Tmall Marketplace has announced discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices.
Among the top five vendors, the primarily budget-oriented Xiaomi recorded the strongest growth in shipments in the fourth quarter with a 29% increase, while Oppo and Vivo saw growth of 18% and 14%, respectively, according to Canalys data. Recorded.
China's annual smartphone shipments in 2024 will increase by 4% from the previous year to 285 million units.
