Apple loses ground in China to local smartphone brands

By Phong Ngo January 9, 2025 | 01:16 am PT

Foreign smartphone brands in China, led by Apple, have seen their market shares plummet with local rivals, particularly Huawei Technologies, grabbing them.

The Apple logo at a store in the electronics market in Shenzhen, China, April 2024. Photo by VnExpress/Luu Quy

Overseas smartphone shipments in China fell to 3.04 million units in November 2024, a 47.3% decline from 5.77 million units a year earlier, according to data from the China Academy of Information and Communications Technology (CAICT), the South China Morning Post reported.

Shipments for the year to November declined by 22% year-on-year to 42 million units.

Although the CAICT report did not name specific brands, iPhones account for a majority of foreign smartphone sales in the country.

The Shenzhen-based company recorded a 34% year-on-year jump in shipments of smartphones priced above US$600 during the third quarter of 2024, according to market research firm Canalys.

In the period iPhone shipments fell by 5%, though Apple retained a 52% share of the premium handset market as against Huawei’s 33%.

Huawei’s strong performance forced Apple to slash prices throughout the year. Recently it offered a 500-yuan (US$68) discount on its iPhone 16 Pro and iPhone 16 Pro Max models.

Apple has also been slow in incorporating AI features to its devices in China.

Early talks with Chinese tech firms to launch its Apple Intelligence system, which requires a domestic AI partner, have been initiated but are progressing slowly.