The iPhone is no longer the best-selling smartphone in China, after two domestic company took over the top spots.
A new report on the Chinese phone market revealed that Dongguan-based company Vivo was now the leader in the Chinese market. Huawei placed second.
Newsweek contacted Apple for comment via email.
Why It Matters
Apple's dethroning as the best-selling smartphone brand in China highlights a significant shift in one of the world's most competitive and lucrative tech markets. China, the second-largest economy globally, is a critical battleground for smartphone makers, and Apple's decline represents a challenge to U.S. control of the tech industry.
It highlights the intensifying competition between the U.S. and China for global influence. A shift in market dynamics could affect innovation, pricing and product availability for U.S. consumers. Apple's performance influences U.S. jobs, the stock market and overall economic health.
What To Know
In 2024, Apple's iPhone sales in China dropped to 42.9 million units, a stark decline from the 51.8 million it sold the previous year, when it still held the top spot, according to a new report from analytics provider Canalys.
While Apple remained tied with Oppo and Honor with a 15 percent market share, it was outpaced in shipments by domestic companies Vivo and Huawei, which led with 17 percent and 16 percent, respectively.
Vivo moving into first place meant that a domestic company outsold Apple's flagship product for the first time in the industry's history.
Huawei, meanwhile, saw a 37 percent year-on-year increase in smartphone shipments, making gains in the industry despite years of sanctions and trade restrictions imposed by the U.S. The report cited brand loyalty as one of the main reasons Huawei was able to maintain its foothold.
Apple's shipments suffered a steep 25 percent decline in the fourth quarter of 2024, even though the overall Chinese smartphone market grew by 5 percent year-on-year, with total shipments reaching 77.4 million units.
The growth was prompted in part by policy decisions. The Chinese government introduced subsidies in 2024 for individual smartphone purchases, which played a significant role in boosting consumer spending and supporting market growth.
What People Are Saying
Amber Liu, research manager at Canalys, in the report: "Intense competition has led to a constantly shifting landscape, with vendors actively seeking to expand investments in their advantageous field.
"Vivo has shown strong momentum by capitalizing on opportunities across online and offline channels, strengthening partnerships with operators and leveraging marketing efforts and product strategies to solidify its position in entry-level to mid- to high-end segments."
What Happens Next
The Chinese smartphone market is expected to grow further in 2025. Vivo and Huawei are likely to continue their upward trajectory for China's internal market.
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