The iPhone has seen a decline, falling from its position as the top-selling smartphone in China to third place according to the latest market insights.
This drop can be attributed to Apple’s difficulty in introducing its Apple Intelligence features in the region, hindered by the inability to secure permission for its generative AI model.
According to Canalys, shipments of iPhones in China plummeted by 25% year-over-year during the last quarter.
Leading the market this year was Vivo, with a 17% market share and 49.3 million units shipped. Huawei followed closely in second with 46.0 million units shipped, showcasing a remarkable year-on-year growth of 37%. Apple, OPPO, and HONOR rounded out the top five, all sharing a 15% market share.
This shift indicates that Apple’s market share has decreased from a leading 19% in 2023 to a joint third with Oppo and Honor in 2024, each now holding 15% of the market.
While local brands have successfully incorporated AI features, Apple is yet to establish a partnership to launch its Apple Intelligence. The Financial Times emphasizes this as a crucial element in the recent market changes.
The data highlights the mounting pressure faced by the US tech giant from local premium smartphone manufacturers, particularly Huawei, which have benefitted from nationalistic purchasing trends and the capacity to implement AI-driven functionalities in their devices. Apple’s Apple Intelligence service remains unavailable in mainland China.
As noted earlier, China mandates that all generative AI models must receive government approval, maintaining strict control over information sources in the nation. Several Western platforms, including Facebook, X, and Wikipedia, are inaccessible due to the Great Firewall of China, while Google withdrew from the market rather than comply with censorship.
Last month, officials indicated that establishing Apple Intelligence in China would be a “difficult and lengthy process” unless Apple collaborates with a local AI firm. Partnering with a Chinese company would be considerably “simpler and more direct.”
Reports suggest that Apple is in discussions with Tencent and ByteDance regarding their AI technology, though progress appears to be limited.
Photo by 尧智 林 on Unsplash
: We use income-earning auto affiliate links. More.
