Apple Inc. witnessed a 5% decline in global iPhone sales during the last quarter of 2024. The drop stemmed from modest upgrades and fierce competition in China, according to a Bloomberg report citing Counterpoint Research.
Annual Sales Fall Despite Industry Growth
Apple’s sales shrank by 2% for the year, while the global smartphone market grew by 4%. Its market share slid to 18%, losing ground to Chinese brands like Xiaomi and Vivo. Even Samsung faced pressure as Motorola and Honor emerged as the fastest-growing players.
Chinese Brands Dominate Market
Chinese smartphone vendors set a new milestone in the last quarter. Francisco Jeronimo, an IDC analyst, stated, “This past quarter was particularly remarkable for the largest Chinese smartphone vendors. They achieved a historic milestone, shipping the highest combined volume ever in a quarter, accounting for 56% of global smartphone shipments.”
AI Innovations Remain a Challenge
Apple is struggling to compete in artificial intelligence (AI) features. While Chinese manufacturers develop cutting-edge AI technology, Apple’s suite, Apple Intelligence, is unavailable in major markets like China. This gap puts Apple at a disadvantage, especially in one of its largest markets outside the US and Europe.
Stock Value Takes a Hit
Apple’s declining performance impacted its stock. On Monday, its shares fell by 3%, closing at $229.72 on the New York Stock Exchange.
Premium Models Show Strength
Despite overall setbacks, Apple found success with its high-end Pro and Pro Max models in China. These devices accounted for over half of Apple’s shipments in the region, reflecting strong demand for premium products.
Apple faces growing competition and innovation gaps in AI. To regain market share, it must focus on strategic advancements and tailored solutions for key markets like China.