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Apple in third place: What's going wrong in China's market

by Milan
January 21, 2025
in News
Apple China

Photo by Unsplash / Lennon K

Apple experienced a noticeable decline in its market position in China in the fourth quarter of 2024. iPhone sales plummeted and the company slipped from the top position to third place in the Chinese smartphone market. What happened that Apple, once the leading manufacturer in this segment, had to vacate this position? A look at the figures and background shows how much competition in China has intensified.

China is more than just another market for Apple. It is one of the largest and most profitable smartphone markets in the world and a crucial place to maintain global technology leadership. The decline in sales in this key market shows how important it is to adapt to local conditions and keep up with the competition. Especially in a country like China, where domestic brands are strengthening their position, even a technology giant like Apple can stumble.

Apple's decline - the facts and background

In the fourth quarter of 2024, Apple's iPhone shipments in China increased by 18.2% year-on-year. decreasedThis means that its market share fell to 17.1%, putting Apple behind Huawei (18.1%) and Xiaomi (17.2%). Just one year before, Apple was the market leader with a share of 19%. This decline marks a turning point, as it is the first time since the US ban on Huawei that Apple has been overtaken by its Chinese competitor. A key reason for this decline is the success of Chinese brands, particularly Huawei. Thanks to innovative features such as advanced AI in its flagship Mate 70 and mid-range Nova 13 series, Huawei was able to increase its sales by 15.5% over the same period. These figures show that Chinese brands are increasingly able to compete with Apple not only in terms of price but also in terms of technology.

Apple Intelligence and the AI Competition in China

Another factor is Cupertino's delayed launch of Apple Intelligence in China. While this AI feature was launched in the US in October 2024, it is not yet available in China due to legal restrictions. This is a clear disadvantage, especially in a market that is increasingly placing value on AI-powered features. Apple is reportedly working on making the technology available through partnerships with Chinese companies. It remains to be seen whether this will succeed in time. General market developments also play a role. The Chinese smartphone market as a whole shrank by 3.2% year-on-year in the fourth quarter of 2024. It was the only quarter of the year with negative growth. So while all brands are facing difficult conditions, Huawei was able to show how important innovation and adaptation are in such periods.

Apple's Future in China

Apple is facing major challenges in China. The drop to third place shows how strong the competition from domestic brands has become. Huawei and Xiaomi are not only scoring points with cheaper prices but also with technological innovations that are specifically tailored to the Chinese market. It is crucial for Apple to adapt to these circumstances. The introduction of Apple Intelligence in China could be an important step to make up for lost ground. But the competition is not sleeping - and brands like Huawei continue to rely on aggressive market strategies and technological advances. The next few months will show whether Apple is able to overcome the challenges and strengthen its position in one of the most important markets in the world. One thing is clear: without innovation and adaptation, it will be difficult to get back to the top in China. (Photo by Unsplash / Lennon K)

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