Apple had a rough holiday quarter for iPhone sales in China, falling from its dominant first-place spot in the year-ago quarter to third place in 2024.
According to data from market tracker Counterpoint Research, iPhone sales in China dropped 18.2% year-over-year during the final quarter of 2024. Apple ranked third in smartphone sales in the country, with a 17.1% market share (as compared to 20.2% in Q4 2023).
Native smartphone makers Huawei and Xiaomi overtook Apple to place first and second with 18.1% and 17.2% of total smartphone sales, respectively. Interestingly, this is the first time since the U.S. ban on Huawei that the Chinese company has overtaken Apple on its home turf, or regained the leading position in the market.
Image: Counterpoint Research
Huawei managed an impressive 15.5% year-over-year growth in sales, attributed largely to the success of its mid-range Nova 13 series and flagship Mate 70 line. A larger, more competitive selection of premium offerings from Chinese smartphone makers left Apple on the back foot in the world’s second-largest economy.
To add to Cupertino’s woes, the release of the iPhone 16 series’ crowning feature, Apple Intelligence, has hit regulatory roadblocks in China.
While Apple Intelligence launched alongside the iPhone 16 lineup in September 2024 in the U.S. and became officially available in Canada last month, China’s restrictive regulatory requirements have prevented its release in the region. Apple reportedly plans to partner with local tech companies like Tencent and ByteDance to bring its suite of AI features to China.
Overall, smartphone sales in China dipped 3.2% year-over-year in Q4 2024. It was the only quarter to post a decline, though, and the market grew 1.5% during the year.
“The country’s smartphone market saw a rebound in the first three quarters of the year, with positive YoY growth each quarter,” Counterpoint Research’s Associate Director, Ethan Qi, said. “However, momentum began to slow in Q4 as consumers adopted cautious spending behavior.”
Counterpoint is cautiously optimistic about the Chinese smartphone market heading into 2025, predicting sustained low-single-digit growth. The Chinese government’s recently announced smartphone subsidy program could also help bolster sales this year, especially during the first quarter.
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