Apple’s iPhone market share declined in 2024, falling to 18% amid stiff competition from Chinese rivals. This decline coincides with a 2% year-over-year sales drop for Apple globally, while the overall smartphone market experienced 4% growth.
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Counterpoint Research attributes this decline partly to the absence of Apple Intelligence, Apple’s suite of AI-powered features, in the Chinese market. The company is still working on securing local partnerships to enable AI features like writing assistance and image generation in China, its largest market outside the US.
“The iPhone 16 series was met with a mixed response, partly due to a lack of availability of Apple Intelligence at launch,” said Tarun Pathak, director at Counterpoint Research.
Meanwhile, Chinese smartphone makers, including Xiaomi and Vivo, are rapidly gaining market share. These companies are aggressively developing their own AI tools and agents, offering users access to advanced AI capabilities directly on their devices.
Samsung Electronics, another major player in the smartphone market, also experienced a decline in market share.
Lenovo Group’s Motorola and Huawei Technologies Co., along with its sub-brand Honor, emerged as the fastest-growing brands in the top 10.
Apple’s focus on AI innovation is evident in its recent product launches, however, the lack of availability of these features in key markets like China poses a significant challenge to its continued growth.