BEIJING: Apple’s iPhone shipments in China experienced a sharp 25% decline in the fourth quarter of 2024, according to data from research firm Canalys. This drop comes as the tech giant faces intensified competition from a resurgent Huawei, which has been steadily gaining ground in one of Apple’s largest global markets.
During the fourth quarter, Apple shipped 13.1 million units in China, securing a narrow 17% market share. However, Huawei closely followed with a 17% market share as well, with 12.9 million units shipped, placing the two companies in a near tie for market leadership, the Canalys report revealed.
Huawei, which saw a 24% increase in shipments during the same period, has proven to be a formidable challenger to Apple, particularly since its reentry into the premium smartphone market in August 2023 with domestically-produced chipsets. This move has allowed Huawei to offer competitive flagship devices, resonating with Chinese consumers.
In response to the growing pressure from local brands, Apple has resorted to rare discounting strategies to boost its sales. The company launched a four-day promotional campaign from January 4 to 7, offering discounts of up to 500 yuan (approximately $68.50) on its iPhone 16 models through its official channels. Major Chinese e-commerce platforms, including Alibaba’s Tmall, also joined the trend, offering discounts of up to 1,000 yuan ($137) on the iPhone 15 series.
“Despite retaining leadership with the iPhone 15 series in Q4, Apple is increasingly challenged by domestic flagship devices,” said Amber Liu, a Canalys analyst. “Beyond seasonal price cuts, Apple is focusing on enhancing its market position in China’s premium segment through improved retail experiences, trade-in programs, and expanded interest-free installment plans to increase customer retention.”
Overall, annual smartphone shipments in China rose by 4% year-over-year in 2024, reaching 285 million units, signaling a steady market performance despite the ongoing competition between international and domestic brands.
