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Absence from China costs Apple 5% decline in iPhone sales

  • By Al Mayadeen English
  • Source: Bloomberg
  • 13 Jan 2025 13:19
2 Min Read

Apple continues to search for a partner in China for its Apple Intelligence initiative.

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  • People visit an Apple Store to try out the latest iPhone 15 handsets, which have started its sale this week, at an outdoor shopping mall in Beijing, Sunday, Sept. 24, 2023 (AP)
    People visit an Apple Store to try out the latest iPhone 15 handsets, which have started its sale this week, at an outdoor shopping mall in Beijing, Sunday, September 24, 2023. (AP)

Apple Inc. experienced a 5% drop in global iPhone sales and lost market share to Chinese competitors during the last quarter of 2024, highlighting challenges tied to the absence of Apple Intelligence in its largest international market outside the US.

According to Counterpoint Research, the iPhone’s global market share fell by one percentage point to 18% in 2024. Samsung Electronics Co., Apple’s main competitor, also lost market share to faster-growing Chinese Android brands, including Xiaomi Corp. and Vivo. While the global smartphone market grew by 4% for the year, Apple’s sales declined by 2%.

Why it matters

The Cupertino, California-based company, is still working to integrate artificial intelligence capabilities, rolling out its Apple Intelligence features in stages following the September launch of the iPhone 16.

These AI enhancements, such as writing assistance and image generation, are not yet available in China as Apple seeks local partners to support their implementation. Some analysts have cautioned that investor expectations for AI features may have been overly optimistic.

Tarun Pathak, director at Counterpoint Research, said as quoted by Bloomberg that “Apple’s iPhone 16 series was met with a mixed response, partly due to a lack of availability of Apple Intelligence at launch.” 

In China, while Apple sold fewer units overall, its higher-end Pro and Pro Max models accounted for more than half of all iPhone sales, indicating strong demand for premium devices.

Meanwhile, brands such as Lenovo’s Motorola, Huawei Technologies Co., and Honor Device Co. were among the fastest-growing in the top 10 globally. Many Chinese smartphone makers are advancing their in-house AI tools and agents, including features designed to automate user tasks.

  • AI setbacks
  • Artificial Intelligence
  • iPhone sales
  • Apple Intelligence initiative
  • China
  • Apple

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