Market Analysis

Image Credit: Reuters

Apple's smartphone shipments in China dropped by 25% in the fourth quarter of 2024, according to Canalys data, as the company faced increasing competition from a resurgent Huawei in one of its largest global markets.

Apple shipped 13.1 million iPhones in China during this period, maintaining a narrow lead with a 17% market share. However, Huawei was close behind, securing 17% market share with 12.9 million units shipped, putting the two companies in a virtual tie for market leadership.

Huawei, which saw a 24% increase in shipments in Q4, has become a formidable rival since it re-entered the premium segment in August 2023 with locally-produced chipsets.

In response to growing competition, Apple resorted to rare discounts to boost sales. The company offered price cuts of up to 500 yuan ($68.50) on its iPhone 16 models in a four-day promotion from January 4-7. Major Chinese e-commerce platforms, including Alibaba's Tmall, also announced their own discounts, with up to 1,000 yuan ($137) off iPhone 15 models.

"While Apple and its iPhone 15 series remained dominant in Q4, they are under increasing pressure from local flagship devices," said Canalys analyst Amber Liu. "Beyond seasonal discounts, Apple is strengthening its position in China's premium segment through enhanced retail experiences, trade-in programs, and expanded interest-free installment plans."

In 2024, annual smartphone shipments in China grew by 4% year-on-year, reaching 285 million units.

Paraphrasing text from "Reuters" all rights reserved by the original author.