By The Malketeer
Once Dominant, Now Dethroned
Apple has hit a historic low in China, losing its crown as the country’s top smartphone seller in 2024.
Research from Canalys reveals that Apple’s annual shipments in China dropped by a staggering 17%, marking the company’s worst performance since 2016.
The tech giant was overtaken by local brands Vivo and Huawei, which claimed 17% and 16% of the market share, respectively, leaving Apple with a modest 15%.
Why Apple Lost Its Edge
This dramatic decline unfolded amidst an increasingly competitive landscape dominated by Chinese manufacturers.
Huawei’s resurgence with locally-produced chipsets and Vivo’s aggressive technological innovations have placed Apple in a tight spot.
Adding to the woes, Apple’s latest iPhones in China lack artificial intelligence features—a stark contrast to domestic brands offering advanced AI-driven capabilities.
“Apple’s premium market position faces multiple challenges,” says Canalys analyst Toby Zhu, pointing to Huawei’s flagship launches, foldable phone innovations, and Android brands like Xiaomi and Vivo winning customer loyalty through cutting-edge technology.
Huawei’s Comeback: The Premium Game Changer
The comeback of Huawei has been nothing short of remarkable.
Following its August 2023 launch of smartphones with locally-produced chipsets, Huawei posted a 24% increase in shipments during the fourth quarter alone.
This success highlights a reversal of fortunes after years of US sanctions restricted its access to critical American technologies.
Discount Wars: A Desperate Measure?
In a bid to claw back market share, Apple resorted to rare promotional discounts in January 2025, slashing prices on iPhone 16 models by up to ¥500 (US$68.50).
Major e-commerce platforms like Alibaba’s Tmall joined the price war, offering even steeper discounts of up to ¥1,000 (US$137).
While the discounts generated short-term buzz, they underscored a critical issue: Apple’s reliance on pricing strategies in the face of dwindling competitiveness.
The Rise of Budget and Innovation-Driven Brands
Interestingly, budget-friendly Xiaomi emerged as the biggest winner among the top five vendors, recording a 29% growth in shipments during the fourth quarter.
Oppo and Vivo also saw gains of 18% and 14%, respectively.
These numbers reflect a broader trend—Chinese consumers are prioritising value and technological innovation over brand legacy.
China’s Smartphone Market Sees Growth Despite Apple’s Decline
Overall, the Chinese smartphone market grew by 4% year-on-year, with 285 million units shipped in 2024.
Vivo’s market leadership and Huawei’s premium rebound showcase a dynamic shift in consumer preferences, leaving Apple scrambling to find its footing.
What’s Next for Apple?
Apple’s fall from grace in China signals the urgent need for a strategic pivot.
Whether it’s integrating AI capabilities, developing region-specific features, or competing more effectively in the premium segment, the tech giant must address its growing vulnerabilities.
The story of Apple’s decline is more than a tale of numbers—it’s a wake-up call about the evolving landscape of consumer loyalty, innovation, and value-driven marketing in one of the world’s most lucrative smartphone markets.
The post Apple’s Fall from Grace: How Vivo and Huawei Took the Smartphone Crown in China appeared first on MARKETING Magazine Asia.
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