China’s smartphone market experienced a 4% growth in 2024, with shipments rising to 285 million units signaling a rebound after two years of decline, according to Canalys’ latest research.
Apple, however, faced challenges in the region, seeing shipments decline by 17% year-on-year, totaling 42.9 million units and accounting for a 15% market share. This places the iPhone maker in third behind Vivo and Huawei.
The fourth quarter of 2024, typically a peak season for high-end smartphones, saw intensified competition. Apple shipped 13.1 million units during this period, retaining the top spot for the quarter. However, this represented a significant 25% decrease compared to the same quarter in the previous year.
In contrast, Vivo and Huawei each shipped 12.9 million units in Q4, both capturing 17% of the market, closely trailing Apple.
Several factors contributed to Apple’s declining performance in China. The absence of advanced AI capabilities in its recent iPhone models, a feature increasingly emphasized by competitors, has been a notable disadvantage. Huawei has capitalized on this trend by introducing smartphones equipped with AI functionalities and domestically developed chipsets.
In response to the growing competition, Apple has implemented strategies such as offering discounts and promotions to boost sales. Despite these efforts, the company’s market share has been eroded by the rapid advancements and strategic positioning of domestic brands.
The Chinese government’s nationwide subsidy policy, announced in January 2024, further supported local manufacturers, enabling them to offer high-quality products at competitive prices.
Looking ahead, Canalys forecasts that smartphone shipments in Mainland China will exceed 290 million units in 2025, driven by steady demand recovery and a stable macroeconomic environment.
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