During the third quarter of 2024, Apple really took charge of the Chinese smartphone scene. However, in the following quarter, it appears that two local brands have managed to surpass them. The iPhone manufacturer experienced a drop in Q4 2024, so let’s dive into the details we have at this point.
Apple Loses Its Edge to Local Giants
As per a report by Canalys, the well-known company from Cupertino was overtaken by two local rivals. Apple lost its top spot to Vivo, which has emerged as the new leader in the market, followed by Huawei as the second. While Huawei was the only runner-up in Q3 2024, Vivo managed to leap ahead of both brands in the next quarter. In the Chinese smartphone arena, Vivo captured a 17 percent share of the market.
Market Shares and Challenges
On the flip side, Huawei held a 16 percent share, while Apple accounted for about 15 percent of the total market. According to the report, Apple’s position in the Chinese market declined because their iPhones lacked support for advanced AI features. This made them less appealing to potential buyers, especially when compared to Chinese smartphones that come equipped with a variety of AI capabilities.
Due to this situation, the company faced its lowest annual sales in the Chinese market, as stated by Canalys senior analyst Zhu Jiatao. He mentioned that Apple’s market standing is also facing numerous obstacles from its competitors. Furthermore, Huawei continues to introduce flagship devices, and the number of domestic foldable phones in China has significantly increased, often at premium prices. Xiaomi and Vivo are also fostering consumer loyalty through innovative technology. Thus, it is expected that Apple is encountering tough competition in the high-end market.