BEIJING: Apple’s dominance in China’s smartphone market is being challenged, as its Q4 2024 iPhone shipments plunged 25%, according to data from research firm Canalys. The tech giant now finds itself in a heated race with a resurgent Huawei, which is rapidly gaining ground in one of Apple’s most crucial markets.
Apple shipped 13.1 million iPhones in China during the fourth quarter, barely holding onto the top spot with a 17% market share. Huawei, riding a wave of renewed success, shipped 12.9 million units, capturing an equal 17% share and closing the gap on market leadership.
Huawei’s remarkable 24% growth in shipments during Q4 reflects its strong comeback in the premium segment, bolstered by the launch of locally-made chipsets in August 2023. This resurgence has put significant pressure on Apple, which has turned to aggressive discounting strategies to maintain its foothold.
In early January, Apple initiated a rare four-day promotion in China, slashing prices on its iPhone 16 models by up to 500 yuan (US$68.50) through official channels. Major Chinese e-commerce platforms, including Alibaba’s Tmall marketplace, have followed suit, offering discounts of up to 1,000 yuan (US$137) on iPhone 15 devices to attract customers.
“While the iPhone 15 series held onto its leadership position in Q4, the competitive landscape is intensifying, particularly with the rise of domestic flagship devices,” said Amber Liu, an analyst at Canalys.
To counter this growing competition, Apple is focusing on bolstering its presence in the premium segment. Initiatives such as enhanced retail experiences, trade-in programs, and expanded interest-free installment plans are aimed at improving user retention and sustaining its edge in the Chinese market.
Meanwhile, China’s overall smartphone shipments for 2024 grew by 4% year-over-year, reaching 285 million units, reflecting a steady recovery in the market. As the rivalry between Apple and Huawei heats up, the battle for leadership in China’s premium smartphone segment is expected to become even more intense.
