Apple's China Grip Slips as Huawei Makes a Strong Comeback

Apple's iPhone shipments in China fell by 25% in the fourth quarter of 2024, as reported by Reuters, citing data from research firm Canalys. This substantial drop comes as the US tech giant grapples with growing competition from a resurgent Huawei in the world's largest smartphone market.

While Apple narrowly maintained its market lead with a 17% share and 13.1 million units shipped, Huawei matched that market share with shipments of 12.9 million units, marking a virtual tie for market dominance.

Huawei has staged a remarkable comeback, posting a 24% increase in shipments in the fourth quarter after re-entering the premium segment in August 2023 with locally produced chipsets. This resurgence poses a significant challenge to Apple's position in China.

Apple has responded to increasing competitive pressures by offering significant discounts, including price cuts of up to 500 yuan ($68.50) on its iPhone 16 models in its official channels. Major Chinese e-commerce platforms have followed suit with their own promotions, offering discounts of up to 1,000 yuan ($137) on iPhone 15 series devices.

"While Apple and its iPhone 15 series maintained their leadership in the fourth quarter, they face mounting pressure from domestic flagship devices," said Canalys analyst Amber Liu. "Beyond seasonal promotions, Apple is enhancing its competitive position and user retention in China's premium segment through improved retail experiences, trade-in programs, and expanded interest-free installment plans."

Despite Apple's challenges, overall smartphone shipments in China increased 4% year-over-year in 2024 to 285 million units.