Apple’s China smartphone decline meets a Chinese AI feature gap
Rest of World reports that Apple fell from China’s top smartphone seller in 2024 to Vivo and Huawei, with annual shipments down 17%. Apple Intelligence is unavailable on mainland China iPhone 16 models pending regulatory approval, while Huawei and other Chinese brands have introduced AI features using DeepSeek technology. Buyers and IDC analyst Francisco Jeronimo cited distinct devices, battery life and AI capabilities as reasons for favoring Chinese brands, while proposed US tariffs and their potential iPhone price effects remain uncertain.
The report connects Apple’s declining position in China with its delayed AI availability, as Chinese handset makers add more visible AI features and gain share among buyers seeking advanced functionality.
At a Huawei iHuaweiHuawei is a Chinese technology company focused on mobile phones and telecommunications, and is seen as a poster child for China’s global tech ambitions.READ MORE store in a bustling shopping mall in northern Hong Kong last week, shoppers flocked to the Mate XT, the world’s first tri-fold smartphone, which can turn into a full-sized tablet. Earlier that day, YouTube sensation IShowSpeed bought three of the high-end phones — which start at about $2,800 — during a livestream in neighboring Shenzhen.
“It’s so big!” the prominent U.S. influencer with more than 38 million subscribers on YouTube said at a packed Huawei store, surrounded by onlookers.
“People who buy Chinese-made phones are looking for advanced features,” Steve Fok, a phone seller at an electronics mall in central Hong Kong, told Rest of World. Even iPhone owners were purchasing a second Chinese device for superior battery life and tech, he said.
Apple lost its spot as the top smartphone seller in China — the world’s biggest smartphone market — last year to local rivals Vivo and Huawei. Apple’s annual shipments in the country fell 17%, its biggest annual smartphone sales decline in China since 2016. Globally, too, while Apple held on to its top spot, its shipments dropped in 2024 compared to the previous year. Its market share also declined, while that of Chinese brands including Xiaomi iXiaomiXiaomi is a Chinese consumer electronics company that leads the country in smartphone manufacturing and sales.READ MORE, Oppo, Vivo, Honor, and Huawei rose internationally.
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