Wearing the crown invites challenges; keeping it requires mastering them. Sometimes, even the strongest contenders lose their grip. In 2024, Apple was dethroned as China’s largest smartphone seller, overtaken by local rivals Vivo and Huawei.
Canalys, a market data research firm, reported that Apple lost its top position as China’s leading smartphone vendor. Following this disappointing news, Apple stock dropped 4% on Thursday, marking its worst single-day performance since August.
Apple accounted for 15% of the 284 million smartphones sold in China in 2024 — a 17% annual decline, amounting to approximately 42.9 million iPhones. This was Apple's largest annual smartphone sales drop in China since 2016, with sales shrinking across all four quarters.
So, who leads the market now? Chinese manufacturer Vivo dethroned claimed the top spot with a 17% market share, translating to around 50 million units sold. Huawei followed closely, shipping 46 million smartphones. Analysts attribute their success to affordable premium designs, in-house chips, and foldable phone innovations.
This market shift underscores China's growing preference for domestic technology over foreign brands. Apple faces intensified competition from local brands offering advanced AI features and custom operating systems.The lack of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, has further eroded Apple’s competitive edge.
Looking ahead to 2025, Apple is expected to face continued challenges in China this year. The company is currently developing two “thinnest” iPhone models (SE 4 and foldable), both of which will likely only support eSIM — a technology not widely promoted in China.
However, there is some positive news. Apple retained the top spot in the fourth quarter of 2024, selling 13.1 million units during the holiday season, traditionally a strong sales period for the company. Yet, this figure represents a 25% year-over-year decline, signaling that competition is gaining ground.
Apple's shares are now down roughly 12% from their December peak when the tech giant was on the verge of reaching the $4 trillion milestone.