With iPhone shipments falling 25% in 4Q24, is China becoming difficult for Apple? Experts highlight increased competition, economic pressures, and government-backed local brands like Huawei.
The Chinese market is increasingly proving challenging for Apple due to fierce competition from local smartphone brands. This was reflected in a recent Canalys report, which revealed that Apple’s iPhone shipments fell by 25% in the fourth quarter of 2024, while Huawei’s shipments saw a 24% increase during the same period.
This shift highlights Apple’s difficulties in China, which are influenced by the country’s weakening economy, reduced consumer spending, and strong competition from government-backed Huawei.
However, Apple retained its market leadership despite the decline with a 17% share, shipping 13.1 million units in the fourth quarter of 2024, according to Canalys data. On the other hand, Huawei, with a 17% market share, significantly narrowed the gap, increasing its shipments from 10.4 million units in Q4 2023 to 12.9 million in Q4 2024.
According to DigiTimes Asia, Apple has faced increasing pressure, especially following a poor start to 2024. In Q1, iPhone sales dropped by 19%, marking the company’s worst performance in China since 2020. By Q2, Apple’s market share had fallen out of the top five for the first time. Apple offered limited-time promotions to combat these challenges, including a four-day discount event in January 2025.
One key factor in the market shift is the Chinese government’s subsidy policy, which focuses on mid-tier smartphones priced under CNY6,000. As Apple’s premium devices are excluded from these subsidies, it faces additional competition from domestic brands, particularly Huawei, which continues to benefit from strong governmental support.
As Apple navigates these challenges, analysts predict a decline in global iPhone shipments in 2025, with projections of between 220 million and 225 million units, below the expected 240 million. Economic uncertainty and reduced demand in key markets, including China, will likely impact the overall growth of the smartphone sector.
In response, Apple is enhancing its retail experiences and increasing its interest-free instalment options to retain customer loyalty, while also exploring the integration of artificial intelligence into its devices for the Chinese market.
According to Toby Zhu, Senior Analyst at Canalys, “In addition to driving sales through seasonal promotions, Apple is enhancing its high-end competitiveness and user retention by improving retail experiences through channel management, offering trade-in programs and expanding coverage of interest-free installment plans.”
However, with growing competition and ongoing economic pressures, Apple’s ability to sustain its position in China remains uncertain.
The broader smartphone market in China showed a 5% year-on-year (YoY) growth in the same quarter, reaching 77.4 million units, signalling a partial recovery from previous declines.
The overall smartphone market in China improved in 2024, recovering from two years of downturn. Total shipments reached 285 million units, marking a 4% YoY increase. Vivo led the market with 17% of the share, followed closely by Huawei with 46 million units, a significant 37% growth. Apple, OPPO, and Honor each held 15% of the market, underscoring the intense competition.
