Apple Falls Behind as Chinese Rivals Surge in Smartphone Sales

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Apple has lost its position as the leading smartphone seller in China as local competitors Vivo and Huawei have overtaken the iPhone maker, according to data released by research firm Canalys. In 2024, Apple’s smartphone shipments in China decreased by 17%, marking its largest annual sales drop in the region since 2016. The company's market share fell to 15%, trailing Vivo at 17% and Huawei at 16%. The decline in sales was particularly pronounced in the last quarter, with a staggering 25% drop.

Market analysts attribute Apple's struggles to several factors, including its lack of artificial intelligence features in the latest iPhone models, which is vital in a market increasingly focused on technology advancements. This downturn comes after Apple enjoyed four years of consecutive growth, largely due to U.S. sanctions limiting Huawei's access to American technology. However, since mid-2023, Huawei has made significant strides in the premium smartphone market with the launch of devices featuring locally-produced chipsets.

In an attempt to rekindle sales, Apple has introduced limited-time discounts on the iPhone 16 series, with promotions on various e-commerce platforms in China. Despite these efforts, Xiaomi, another domestic competitor, recorded a 29% increase in shipments during the fourth quarter, further emphasizing the challenges Apple faces.

As the competitive landscape continues to evolve, analysts question whether Apple can regain its foothold in one of its most important markets.

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