Thursday, January 16, 2025 – According to data from research company Canalys, in the fourth quarter of 2024, Apple’s iPhone shipments in China plummeted by 25%, highlighting Apple’s challenges in China due to competition from Huawei supported by the Chinese Communist Party, as well as the impact of the slowing Chinese economy and consumer downgrading.
Reuters reported that according to data released by Canalys on Thursday, Apple shipped 13.1 million phones in China in the fourth quarter of last year, barely maintaining its market leading position with a 17% share.
Canalys data also shows that Huawei captured a 17% market share with shipments of 12.9 million units, nearly on par with Apple in terms of market leadership.
Looking at the full year of 2024, Apple’s annual shipments in China decreased by 17%, losing its position as the largest smartphone seller in China. “This is Apple’s worst performance in China,” said Canalys analyst Toby Zhu.
Facing increasing competitive pressure, Apple has taken rare discount measures to stimulate sales. The company conducted a four-day promotion in China from January 4th to 7th, offering up to 500 yuan ($68.50) discount for its iPhone 16 models through official channels.
Various e-commerce platforms in China have followed suit, launching their own promotional activities. Alibaba’s Tmall announced offering up to 1,000 yuan ($137) discount on iPhone 15 series devices.
Canalys analyst Amber Liu said, “Despite Apple and its iPhone 15 series maintaining a lead in the fourth quarter, they are facing increasing pressure from domestic devices in China.”
“In addition to seasonal promotions, Apple is enhancing its competitive position and user retention in the high-end market in China through improvements in retail experience, trade-in programs, and expanding interest-free installment payment plans,” Liu added.
Earlier, data released by the China Academy of Information and Communications Technology (CAICT) on January 3rd showed that foreign smartphone brands, including iPhone, saw their sales in China decline for the fourth consecutive month in November 2024, with a year-on-year decrease of 47.4%. This highlights the pressure facing Apple, the largest foreign smartphone supplier in China.
These data underscore the deepening struggle for Apple in the Chinese market. Besides grappling with the impact of China’s economic slowdown, the company also has to contend with fierce competition from Chinese domestic brands like Huawei.
The uncertainty of the Chinese economy and concerns about currency tightening continue to affect household spending. Official data released on December 9, 2024, revealed that China’s Consumer Price Index (CPI) saw a third consecutive decline in the rate of increase in November, hitting a new low in almost five months.
In recent years, the Chinese authorities have put pressure on Apple while supporting Huawei, exacerbating Apple’s challenges in the Chinese market.