Apple loses top spot in China smartphone sales to local rivals

Apple lost its status as the best selling smartphone brand in the crucial Chinese market last year, new data showed Thursday, with a pair of local rivals surpassing it with surging shipments.

The California-based tech giant claimed a market share of 15 percent in the world's number two economy, behind Huawei's 16 percent and top-ranking Vivo's 17 percent, according to industry data provider Canalys.

Also coming in at 15 percent, with total smartphone sales narrowly behind Apple's, were Chinese brands Oppo and Honor, the data showed.

Apple's performance in the country is suffering from a slump in iPhone sales, which dropped to 42.9 million in 2024, compared to a market-leading 51.8 million the previous year.

"Intense competition has led to a constantly shifting landscape," said Amber Liu, Research Manager at Canalys, adding that Apple "faced growing competitive pressure from domestic flagship devices".

Top-ranked Vivo showed "strong momentum" last year, Liu said, noting that the firm's strategy was helping "solidify its position in entry-level to mid-to-high-end segments".

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Meanwhile, Huawei, a Shenzhen-based tech giant that was once the target of tough sanctions from Washington due to national security concerns, continued a resurgence in its home market in 2024.

The firm achieved a 37 percent year-on-year jump in total smartphone shipments last year, the Canalys data showed.

Apple's iPhone remains popular in China, but many consumers in the vast market have switched to domestic alternatives in recent years as sector competition intensifies.

Firm CEO Tim Cook visited China multiple times last year, as the US tech giant sought to shore up slumping sales in the country.

Apple's fourth-quarter smartphone shipments plunged 25 percent, according to Canalys data.

The mainland Chinese smartphone market as a whole expanded five percent year-on-year in the fourth quarter, the report added, with total shipments reaching 77.4 million units.

And in a further positive signal for the sector, Beijing last week announced that it would roll out subsidies for individual purchases of certain smartphones, part of a discount scheme it hopes will boost spending as the economy wavers.

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The latest policy "has laid the foundation for this year's market growth", said Lucas Zhong, Research Analyst at Canalys, adding that "vendors have already begun preparations for channels and supply".

Source: AFP