Apple Faces Growing Pressure from Huawei in China’s Smartphone Market

Slumping Sales and Competition

Apple’s smartphone shipments in China plummeted 25% in the fourth quarter of 2024, according to data from research firm Canalys. This significant decline is attributed to mounting pressure from Huawei, a resurgent Chinese tech giant, in one of Apple’s biggest global markets.

Market Share and Shipments

During the same period, Apple shipped 13.1 million units in China, narrowly maintaining its market lead with a 17% share. Huawei, on the other hand, captured 17% market share on shipments of 12.9 million units, placing it in a virtual tie with Apple for market leadership.

Rare Discounts to Stimulate Sales

Apple has turned to rare discounts to stimulate sales amid growing competitive pressure. The company launched a four-day promotion in China from January 4-7, offering price cuts of up to 500 yuan (US$68.50) on its iPhone 16 models through its official channels.

Competitive Response

Major Chinese e-commerce platforms have followed suit with their own promotions. Alibaba’s Tmall marketplace announced discounts of up to 1,000 yuan (US$137) on iPhone 15 series devices.

Analysis

“Beyond seasonal promotions, Apple is enhancing its competitive position and user retention in China’s premium segment through improved retail experiences, trade-in programmes, and expanded interest-free installment plans,” said Canalys analyst Amber Liu.

Market Trends and Growth

Annual shipments of smartphones in China in 2024 increased 4% year-over-year to 285 million units.

Conclusion

Apple’s struggles in China’s smartphone market are a testament to the growing competition from Huawei and other domestic players. To stay ahead, Apple will need to continue to innovate and adapt to changing market trends and consumer preferences.

Frequently Asked Questions

Q: What was the decline in Apple’s smartphone shipments in China?
A: Apple’s smartphone shipments in China declined 25% in the fourth quarter of 2024.

Q: Who is the main competitor to Apple in China’s smartphone market?
A: Huawei is the main competitor to Apple in China’s smartphone market.

Q: What measures has Apple taken to stimulate sales in China?
A: Apple has launched a four-day promotion in China, offering price cuts of up to 500 yuan (US$68.50) on its iPhone 16 models through its official channels.

Q: What is the growth rate of smartphone shipments in China?
A: Annual shipments of smartphones in China in 2024 increased 4% year-over-year to 285 million units.