Apple, which had been the top smartphone seller in China for several years, fell to third place last year behind Chinese companies such as Vivo and Huawei.
Reuters reported on the 16th, citing data from market research firm Canalys, that Apple's smartphone shipments in the Chinese market dropped by 17% last year, losing its top sales position. Budget smartphone maker Vivo captured first place with a 17% market share, while the high-end brand Huawei ranked second with 16%. Apple slipped to third place with a 15% market share.
Apple's iPhone saw a 25% drop in revenue in China during the fourth quarter last year, showing a decline in revenue for all four quarters. The annual revenue decrease was the largest on record. Apple's struggles are believed to stem from the inability of iPhones sold in China to incorporate artificial intelligence (AI) features. Apple had shown steady growth for four years after the U.S. government placed Huawei on a list of companies with trading restrictions in 2019, limiting access to U.S. advanced technology.
However, Huawei made a comeback in the premium smartphone market starting in August 2023 by creating new mobile phones with chipsets produced domestically. Huawei's shipments in the fourth quarter of last year increased by 24%.
To promote sales, Apple also held discount events that had not typically done before. From the 4th to the 7th of this month, it reduced the price of the iPhone 16 model by as much as 500 yuan (approximately 990,000 won) through its official sales network in China, and major Chinese e-commerce companies such as Alibaba also carried out their own promotions.