Apple lost its position as the largest smartphone vendor in China in 2024 as local competitors Vivo and Huawei surpassed the iPhone manufacturer after its yearly shipments in the nation fell 17%, according to data released Thursday by research firm Canalys.
TakeAway Points:
- Apple was dethroned as China’s biggest smartphone seller in 2024, with local rivals Vivo and Huawei overtaking the iPhone maker after its annual shipments in the country declined 17%.
- The decline also points to factors such as the absence of artificial intelligence capabilities in the latest iPhones sold in China, like the absence of ChatGPT.
- Taiwan Semiconductor Manufacturing Co., the main global producer of advanced chips used in artificial intelligence applications, is expected to report a 58% leap in fourth-quarter profit.
Huawei beats Apple in China market
It was Apple’s largest-ever annual sales decline in China and involved contraction in all four quarters, including a 25% drop in the final quarter, according to the data.
For the full year, budget smartphone maker Vivo captured a 17% market share in China, followed by premium rival Huawei with 16% and Apple with 15%, demonstrating the growing sales pressure it faces from domestic manufacturers in one of its biggest global markets.
The decline also points to how factors such as the absence of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, are eating into Apple’s competitiveness.
“This marks Apple’s worst annual performance in China,” Canalys analyst Toby Zhu said.
“Apple’s premium market position faces multiple challenges: Huawei’s continuous flagship releases, the proliferation of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovations,” he said.
Apple had previously enjoyed four years of consistent growth following U.S. sanctions that placed Huawei on an entity list in 2019, restricting its access to American technology.
Huawei’s position in China market
But Huawei has made a strong comeback to the premium segment since August 2023, when it launched new phones with locally-made chipsets. The Chinese company posted a 24% rise in shipments in the fourth quarter.
The iPhone maker has turned to rare discounts to stimulate sales. The company launched a four-day promotion in China from Jan. 4-7, offering price cuts of up to 500 yuan ($68.50) on its iPhone 16 models through its official channels.
Major Chinese e-commerce platforms have followed suit with their own promotions. Alibaba’s
Tmall Marketplace announced discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices.
Among the top five vendors, mostly budget-focused Xiaomi posted the strongest growth with a 29% increase in fourth-quarter shipments, while Oppo and Vivo recorded gains of 18% and 14%, respectively, according to the Canalys data.
Annual shipments of smartphones in China in 2024 increased 4% year-on-year to 285 million units.
TSMC Q4 profit set to increase on strong demand for AI chips
Taiwan Semiconductor Manufacturing Co., the world’s largest manufacturer of cutting-edge chips for AI applications, is anticipated to report a 58% increase in fourth-quarter profit on Thursday.
The world’s largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from the megatrend towards AI. But the Taiwanese company faces headwinds from U.S. government technology restrictions on China and uncertainty about President-elect Donald Trump’s incoming administration, which has threatened broad import tariffs.
The U.S. government said on Monday it would further restrict AI chip and technology exports, adding to potential issues TSMC could face, though Taiwan and other close U.S. allies will be allowed unlimited access to U.S. AI technology.
TSMC is set to report a net profit of T$377.95 billion ($11.44 billion) for the quarter ended Dec. 31, according to a LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate.
That estimate compares to the 2023 fourth-quarter net profit of T$238.7 billion.
TSMC last week reported a jump in fourth-quarter revenue in Taiwan dollars, comfortably beating market expectations. The company gives its revenue outlook in U.S. dollars on its quarterly earnings call, scheduled for 0600 GMT on Thursday.
