Apple Inc. experienced a 5% drop in global iPhone sales during the last quarter of 2024, losing ground to its Chinese competitors. This decline highlights the absence of Apple’s artificial intelligence (AI) advancements in its largest market outside the U.S., China. According to data from Counterpoint Research, Apple’s market share for the iPhone fell to 18% globally, down one percentage point from the previous year. Its archrival, Samsung Electronics, also saw a decrease in market share, as faster-growing Chinese Android device manufacturers, such as Xiaomi Corp. and Vivo, gained traction.
In total, Apple faced a 2% sales decline for the year, even as the global smartphone market grew by 4%. The Cupertino-based company has struggled to keep pace with competitors in the realm of artificial intelligence, with its AI features slowly rolling out after the iPhone 16 launch in September. Notably, these features have not yet reached the Chinese market, where Apple is still negotiating partnerships to integrate AI services like writing assistance and image generation.
“Apple’s iPhone 16 series received a mixed response, partly due to the absence of Apple Intelligence at launch,” said Tarun Pathak, director at Counterpoint Research. “However, the company managed to show growth in non-core markets like Latin America.”
Despite a slowdown in sales in China, Apple saw a notable increase in the proportion of higher-priced Pro and Pro Max models sold, which now account for more than half of its sales in the region. Meanwhile, Chinese smartphone brands, including Lenovo’s Motorola, Huawei Technologies, and Honor Device, emerged as the fastest-growing companies in the top 10 rankings. These manufacturers are developing their own AI tools and services, further intensifying competition for Apple.
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