Apple’s Market Share in China Declines as Fewer iPhones Shipped

Apple Inc. is facing challenges in the Chinese smartphone market, as its market share drops due to a significant decline in iPhone shipments. Insights from supply chain expert Ming-Chi Kuo and Counterpoint Research reveal the reasons behind this trend and its implications for Apple’s future in China.

Declining Market Share
Counterpoint Research reports that Apple’s iPhone market share in China has fallen to 18% in 2024, down from previous levels. The decline stems from strong competition by domestic brands like Xiaomi and Vivo, which offer innovative features at competitive prices.

While the overall smartphone market in China remained stable year-over-year, Apple’s shipments declined by 10-12% in December alone.

Impact of iPhone Shipments
Ming-Chi Kuo predicts a 6% year-over-year drop in Apple’s iPhone shipments for the first half of 2025. This forecast coincides with the expected launch of the iPhone SE4.

Kuo highlights that two upcoming iPhone models are expected to support only eSIM technology, which is not widely used in China. Unless addressed, this could negatively affect Apple’s performance in the region.

Performance of New Models
The iPhone 16 series has underperformed since its launch, failing to attract consumers due to fewer standout features compared to competitors. Additionally, Apple’s limited AI integration in the Chinese market has put it at a disadvantage, as local brands lead with AI-driven enhancements.

Market Dynamics
Chinese brands, including Xiaomi and Vivo, continue to dominate by aligning with local consumer preferences and offering superior features at competitive prices.

China’s trade-in program, which encourages device upgrades through local brands, has further intensified competition for Apple.

Broader Implications
The declining market share and shipment numbers highlight the need for Apple to reevaluate its strategies in China. Local competitors’ agility in meeting consumer needs poses a significant challenge for Apple’s growth in this critical market.

Experts suggest Apple must innovate its product offerings and marketing tactics to regain its competitive edge.