Apple Inc. has experienced a drop in iPhone sales and market share globally, with a significant decline in its largest market outside of the United States. The absence of Apple’s AI-driven features in China has been identified as a key factor contributing to this downturn, as local competitors gain momentum.
According to data from Counterpoint Research, Apple’s iPhone market share fell to 18% in 2024, a drop of one percentage point compared to the previous year. During the same period, Samsung also saw a loss in market share, while Chinese brands, including Xiaomi and Vivo, capitalized on this shift with rapid growth. Apple, which registered a 2% decline in sales for the year, lagged behind the global market’s 4% growth.
Despite these challenges, Apple has been working on integrating artificial intelligence (AI) into its product offerings, although progress has been slow. The company’s AI advancements have been introduced gradually, starting with the iPhone 16 series in September. However, these AI features are not yet available in China, the world’s largest smartphone market, due to Apple’s ongoing efforts to secure local partnerships. These partnerships are essential for offering popular AI services, such as text and image generation, which are already widely available through Chinese brands.
Counterpoint Research director Tarun Pathak noted that the mixed reception of the iPhone 16 series was partly due to the absence of Apple’s AI features at launch. However, Apple has managed to maintain growth in markets outside of its core regions, such as Latin America.
Meanwhile, Chinese smartphone manufacturers, including Lenovo’s Motorola, Huawei Technologies, and Honor, have seen rapid growth in the global market. These companies are advancing their own AI capabilities, creating proprietary tools and services that enable their devices to carry out tasks autonomously for users.
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