Apple Inc. is experiencing another year of declining iPhone shipments in China, with intensified competition from domestic brands like Huawei and Vivo eroding its market share. According to data from research firm Canalys, Apple’s annual shipments in China fell by 17% in 2024, marking its largest-ever annual sales decline in the country.
In the fourth quarter of 2024, Apple shipped 13.1 million units in China, a 25% year-on-year decrease. This decline allowed Huawei to close the gap significantly, with 12.9 million units shipped and a 24% increase in shipments during the same period.
For the full year, Vivo captured a 17% market share in China, followed by Huawei with 16%, and Apple with 15%. This shift underscores the growing sales pressure Apple faces from domestic manufacturers in one of its largest global markets.
Several factors contribute to Apple’s declining performance in China. The absence of artificial intelligence capabilities in the latest iPhones sold in China, where services like ChatGPT are not available, has impacted Apple’s competitiveness. Additionally, Huawei’s resurgence in the premium segment, bolstered by the launch of devices with locally-made chipsets, has attracted consumers seeking advanced features.
In response to the declining sales, Apple has implemented rare discounts to stimulate demand. In January 2025, the company launched a four-day promotion in China, offering price cuts of up to 500 yuan ($68.50) on its iPhone 16 models through official channels. Major Chinese e-commerce platforms, such as Alibaba’s Tmall, followed suit with their own promotions, offering discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices.
As Apple navigates these challenges, the company is also focusing on diversifying its manufacturing base. In April 2025, Apple’s iPhone exports from India to the U.S. surged by 76% compared to the previous year, totalling approximately 3 million units. This strategic shift aims to reduce dependency on Chinese manufacturing amid escalating geopolitical tensions and potential tariffs.
Despite these efforts, Apple faces ongoing pressure in the Chinese market. The company’s ability to innovate and adapt to local consumer preferences will be critical in regaining market share and sustaining growth in the region.
