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Apple Q4 iPhone shipments in China drop 25% as Huawei closes in: Canalys

US tech giant shipped 13.1 million units in China during the period, narrowly maintaining its market lead with a 17 per cent share, according to Canalys data released on Thursday

iPhone 16 Pro Max and Google Pixel 9 Pro XL

Apple has turned to rare discounts to stimulate sales amid growing competitive pressure

Reuters BEIJING

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Apple was dethroned as China's biggest smartphone seller in 2024, with local rivals Vivo and Huawei overtaking the iPhone maker after its annual shipments in the country declined 17 per cent, data from research firm Canalys showed on Thursday. 
It was Apple's largest-ever annual sales decline in China and involved contraction in all four quarters, including a 25 per cent drop in the final quarter, according to the data. 
For the full year, budget smartphone maker Vivo captured a 17 per cent market share in China, followed by premium rival Huawei with 16 per cent and Apple with 15 per cent, demonstrating the growing sales pressure it faces from domestic manufacturers in one of its biggest global markets. 
 
The decline also points to how factors such as the absence of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, are eating into Apple's competitiveness. 
"This marks Apple's worst annual performance in China," Canalys analyst Toby Zhu said. 
"Apple's premium market position faces multiple challenges: Huawei's continuous flagship releases, the proliferation of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovations," he said. 
Apple had previously enjoyed four years of consistent growth following U.S. sanctions that placed Huawei on an entity list in 2019, restricting its access to American technology. 
But Huawei has made a strong comeback to the premium segment since August 2023, when it launched new phones with locally-made chipsets. The Chinese company posted a 24 per cent rise in shipments in the fourth quarter. 
Apple did not immediately respond to a request for comment. 
The iPhone maker has turned to rare discounts to stimulate sales. The company launched a four-day promotion in China from Jan. 4-7, offering price cuts of up to 500 yuan ($68.50) on its iPhone 16 models through its official channels. 
Major Chinese e-commerce platforms have followed suit with their own promotions. Alibaba's Tmall marketplace announced discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices. 
Among the top five vendors, mostly budget-focused Xiaomi posted the strongest growth with a 29 per cent increase in fourth-quarter shipments, while Oppo and Vivo recorded gains of 18 per cent and 14 per cent respectively, according to the Canalys data. 
Annual shipments of smartphones in China in 2024 increased 4 per cent year-on-year to 285 million units. 
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
 

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First Published: Jan 16 2025 | 9:40 AM IST

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