Once the leading smartphones in China, Apple's flagship models have now fallen to second place, overtaken by Huawei Technologies Co., according to findings from Counterpoint Research. Over the three-month period, Apple dropped to third place in the world's largest smartphone market, capturing approximately one-sixth of the market share. This decline in China contributed to a global decrease of 5% in iPhone sales during the crucial holiday shopping season.
The downturn highlights a mixed launch for the latest iPhone generation, which initially gained traction in China but subsequently lost steam. These new models feature artificial intelligence enhancements; however, many of these capabilities remain unavailable in China as Apple seeks a local partner to establish on-device and cloud AI infrastructure. The company is currently in discussions with various entities, including Baidu Inc., Tencent Holdings Ltd., and startups like Zhipu AI, but has yet to finalize any agreements.
“This marks the first time since the US ban that Huawei has reclaimed the top position,” noted Counterpoint analyst Mengmeng Zhang. “Huawei's sales rose by 15.5% year-over-year, fueled by the introduction of the mid-range Nova 13 series and the premium Mate 70 series.”
The Mate 70 models, launched during this period, are the first to offer users a software experience entirely free from US technology, utilizing Huawei’s HarmonyOS Next operating system. Equipped with domestically produced chips and building on the success of the Mate 60 from the previous year, the Mate 70 is aiding Huawei in its efforts to regain a foothold in the premium market segment in China.
Overall, the broader smartphone market in China experienced its first sales decline in the final quarter of 2024, following a period of growth for most of the year.