Two of the world’s leading market intelligence firms report that the iPhone has lost its place as the best-selling phone in China, dropping from 1st to 3rd place in the final quarter of last year.
Increased competition from local brands is cited as one factor, the second being Apple’s inability to offer AI features in the country …
Canalys report last week
Canalys was first to report on Apple’s changing fortunes in China.
Canalys reports that iPhone shipments in China fell by 25% year-on-year in the final quarter of the year.
That means Apple’s market share fell from a chart-topping 19% in 2023 to joint-third with Oppo and Honor in 2024, each with a 15% share.
Counterpoint corroborates
While the exact estimates differ, Counterpoint Research now reaches the same conclusion.
Huawei took the top spot, followed by Xiaomi and Apple (…) In Q4 2024, Huawei climbed to the top spot with an 18.1% share. This is the first time since the US ban that Huawei regained the leading position (…)
Xiaomi secured the second spot in Q4 2024 with a 17.2% market share, driven by strong growth from Q3 into Q4. This growth was fueled by the popularity of its flagship Mi 15 series, launched in October. Xiaomi has made significant progress in premiumization this year (…)
Amid intensifying market competition from Huawei and other Chinese OEMs expanding into the premium market, Apple ranked third during the quarter, capturing a 17.1% market share.
AI features a significant factor
While smartphones from Chinese brands now have AI features, Apple Intelligence is not yet available in the country.
Apple wanted to be able to use its own generative AI model there, but the Chinese government essentially said that wouldn’t be permitted.
The government last month said that launching Apple Intelligence in China would be a “difficult and long process” unless the iPhone maker partners with a local AI company. Working with a Chinese company would instead be “simple and straightforward.”
Apple is believed to be negotiating with Tencent and ByteDance, but with nothing to show for it as yet.
Photo by Christian Lue on Unsplash
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