Tech News

Apple Loses Market Lead From 1st to 3rd Place in China To Vivo and Huawei

Highlights

Apple’s market lead in China fell from first to third place in Q4 2024.
Vivo and Huawei taking the first and second spots, respectively.
Vivo led the market with a 17% share, followed by Huawei with 16% and Apple with 15%.
Apple recorded its worst annual sales in the Chinese market.
The decline was reportedly due to a lack of AI-powered features in Apple’s iPhones.

Apple slips to 3rd position in China in 2024’s third quarter. (Image credit – Apple)

It seems Apple’s dominance as the top smartphone brand in China during Q3 2024 was short-lived as the company slipped from its position soon after. Cupertino giant was overtaken by domestic biggies Vivo and Huawei in Q4 2024. Here’s the full story.

According to a recent report from Canalys, Vivo emerged as the new market leader in the Chinese smartphone market with a 17% share, while Huawei claimed the second spot with 16%. Apple, which had dominated the previous quarter, dropped to third place with a 15% market share.

This shift marks a significant challenge for Apple, as Vivo managed to surpass both Huawei and Apple in just one quarter.

The report states, “Vivo led the market for the year with a 17% market share, shipping 49.3 million units. Huawei ranked second with 46.0 million units shipped, achieving an impressive year-on-year growth of 37%. Apple, OPPO and HONOR followed in third, fourth, and fifth place respectively, each holding a 15% market share.”

The report further suggests that Apple’s decline in the Chinese market was due to a lack of AI-powered features in its iPhones, making them less appealing to local consumers.

In contrast, Chinese smartphone brands have been packing their devices with innovative AI functionalities, which resonate more with buyers in the region. As a result, Apple recorded its worst annual sales in the Chinese market.

A Financial Times report states, “The figures come as the US technology company faces growing pressure from local premium smartphone brands, particularly Huawei, which have benefited from patriotic buying and the ability to roll out artificial intelligence-powered features to their devices. The company’s Apple Intelligence service is not available on the Chinese mainland.”

Canalys senior analyst Zhu Jiatao highlighted that Huawei’s consistent launch of flagship models and the increasing popularity of high-priced foldable phones have added to Apple’s challenges. Additionally, brands like Xiaomi and Vivo are fostering strong consumer loyalty through continuous technological innovation.

Apple’s position in the premium segment faces increasing pressure from competitors like Huawei, which has been aggressive in launching flagship models and Vivo, which has captured consumer attention with innovative features.

FAQs

Q1. Which companies overtook Apple in the Chinese smartphone market in Q4 2024?

Answer. Vivo and Huawei overtook Apple in the Chinese smartphone market in Q4 2024, with Vivo becoming the market leader and Huawei claiming the second spot.

Q2. What were the market shares of Vivo, Huawei, and Apple in China Q4 2024?

Answer. In Q4 2024, Vivo had a 17% market share, Huawei had 16%, and Apple held a 15% market share.

Q3. Why did Apple’s market position in China decline in Q4 2024?

Answer. Apple’s market position declined due to a lack of AI-powered features in its iPhones, while Chinese brands like Huawei and Vivo gained popularity with innovative AI functionalities and flagship model launches.