Apple has lost its title as the best-selling smartphone brand in China to Vivo, with new data showing that domestic rivals are outperforming the California-based tech giant. According to Canalys, Apple’s market share dropped to 15%, falling behind Huawei at 16% and leading Vivo at 17%. The iPhone maker’s slump is attributed to declining iPhone sales, which fell from 51.8 million in 2023 to 42.9 million in 2024.
Key Developments:
- Shift in Market Leadership: In 2024, Vivo surpassed Apple to become the top smartphone brand in China, capturing a market share of 17%. Huawei also showed strong growth, securing 16% of the market share. Apple and Oppo each held 15% of the market share.
- Declining iPhone Sales: Apple’s performance in China has suffered due to a significant decline in iPhone shipments, down by nearly 9 million units from the previous year. The overall smartphone market in China showed a 5% growth in the fourth quarter, with total shipments reaching 77.4 million units.
- Increased Domestic Competition: Apple faces growing competition from local brands like Vivo, Huawei, Oppo, and Honor, which have adapted to the diverse demands of Chinese consumers. Vivo, in particular, has strengthened its position in both entry-level and mid-to-high-end segments, contributing to its market dominance.
- Huawei’s Resurgence: Despite facing sanctions in recent years, Huawei has experienced a strong recovery in the Chinese market, with its smartphone shipments increasing by 37% year-on-year. The company has been investing in research and development to improve its devices.
- Government Support: The Chinese government introduced subsidies for smartphone purchases to boost sales. This new policy is expected to drive further market growth and stimulate consumer spending, especially in the face of a slowing economy.
- Apple’s Response: CEO Tim Cook visited China multiple times in 2024 to address declining sales and reinforce Apple’s presence in the competitive Chinese market. However, despite these efforts, Apple has struggled to regain its previous market position.
