By Kimberley Kao
Apple's smartphone sales in China fell sharply in the final quarter of 2024, hurt by the popularity of local rivals like Huawei and others expanding into the premium market, according to a closely followed research firm.
The U.S. tech giant's fourth-quarter iPhone sales fell 18% in the world's largest smartphone market, placing it third overall behind Huawei and Xiaomi, Counterpoint Research said Tuesday. Apple was China's top seller in the same period a year earlier.
Chinese rival Huawei climbed to the top spot for the quarter. Its phone sales rose 15.5%, helped by the launch of its mid-end Nova 13 series and high-end Mate 70 series, senior research analyst Mengmeng Zhang said.
"This is the first time since the U.S. ban that Huawei regained the leading position," Zhang said.
Vivo, Honor and Oppo rounded out the top six places for the quarter.
The sales decline for Apple reflects the challenges faced by the latest iPhone model in the wake of stronger competition. Sales of iPhones in China during the quarter were weaker than the overall Chinese market, the data showed.
Smartphone sales in the country declined 3.2% during the quarter from the prior-year period. That's the only quarterly decline recorded in 2024, weighed by more cautious consumer spending behavior, said associate director Ethan Qi.
Chinese consumers aren't getting the latest iPhone artificial-intelligence services on their devices, putting Apple at a disadvantage against rival handset makers offering AI services, including Huawei, Honor and Oppo.
Apple has held talks with several Chinese AI companies over a potential partnership to roll out Apple Intelligence in China, The Wall Street Journal reported previously, citing sources.
Sales by No. 2 Xiaomi saw strong demand for its flagship Mi 15 series, while the success of its electric-vehicle venture boosted its brand image, helping to support smartphone sales, Counterpoint Research said.
Looking ahead to 2025, Counterpoint Research analysts "maintain a cautiously optimistic outlook for China's smartphone market in 2025," and projects low-single-digit sales growth, given challenges in the economic environment.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
January 21, 2025 02:13 ET (07:13 GMT)
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