Apple’s iPhone problems in China continue, according to new data from research firm Canalys. This data indicates that Apple not only fell from first place in China for smartphone shipments in the first quarter of 2024 but fell to fifth place.
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According to Canalys, Apple saw its shipments in China reach 10 million units in the first quarter of 2024, a decrease of 25% year over year. This gives Apple a 15% share of the Chinese smartphone market, down from the 20% it had at the same time last year.
Apple’s iPhone in China Market
Here’s the full breakdown of shipments and annual growth in China for smartphone makers in the first quarter:
| Supplier | First quarter of 2024 shipments (millions) | First quarter of 2024 market share | First quarter of 2023 shipments (millions) | First quarter of 2023 market share | Annual growth |
| Huawei | 11.7 | 17% | 6.8 | 10% | 70% |
| OPPO | 10.9 | sixteen% | 12.6 | 19% | -14% |
| HONOR | 10.6 | sixteen% | 9.7 | 14% | 9% |
| alive | 10.3 | fifteen% | 11.3 | 17% | -9% |
| Apple | 10.0 | fifteen% | 13.3 | twenty% | -25% |
| Others | 14.2 | twenty-one% | 13.8 | twenty% | 3% |
| Total | 67.7 | 100% | 67.6 | 100% | 0% |
As you can see, Huawei emerged as a clear winner of the quarter and posted 70% year-over-year growth. Canalys research analyst Lucas Zhong says this can be partly attributed to Apple being blindsided by generative AI:
“The Gen AI smartphone presents significant opportunities for Chinese vendors to differentiate themselves at the high end in 2024 and challenge Apple in their home market. Canalys forecasts that Gen AI smartphones will reach 12% of shipments in 2024 in mainland China, above the global average of 9%. “Vendors are actively engaging consumers by developing interesting AI use cases and integrating AI features into their latest flagship releases with heavy marketing investments to educate consumers.”
Apple CEO Tim Cook traveled to China last month and visited Apple stores, supply chain partners, government officials, and more. Last week, Apple was forced to remove key apps such as Telegram, Signal, WhatsApp, and Threads from the App Store in China following a government order.
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