Apple Faces Decline in Smartphone Shipments in China

BEIJING (Reuters) – Apple’s smartphone shipments in China plunged 25% in Q4 2024, according to data from Canalys, as the iPhone maker faced growing competition from a resurgent Huawei in one of its key markets.

The U.S. tech giant shipped 13.1 million units in China during this period, managing to maintain its market lead with a 17% share, based on Canalys data released on Thursday.

Huawei captured 17% market share with shipments of 12.9 million units, putting it in a near tie with Apple for market dominance. Huawei, which reported a 24% increase in shipments in the fourth quarter, has emerged as a significant competitor since reentering the premium segment in August 2023 with locally-manufactured chipsets.

To stimulate sales amid growing competitive pressure, Apple has turned to rare discounts. The company launched a four-day promotion in China from January 4-7, offering price reductions of up to 500 yuan ($68.50) on its iPhone 16 models via its official channels.

Major Chinese e-commerce platforms have initiated similar promotions. Alibaba’s Tmall marketplace announced discounts of up to 1,000 yuan ($137) on iPhone 15 series devices.

“While Apple and its iPhone 15 series maintained their leadership in the fourth quarter, they face mounting pressure from domestic flagship devices,” said Canalys analyst Amber Liu. “Beyond seasonal promotions, Apple is enhancing its competitive position and user retention in China’s premium segment through improved retail experiences, trade-in programs, and expanded interest-free installment plans.”

Annual shipments of smartphones in China in 2024 rose by 4% year-over-year to 285 million units.