Apple is losing ground in the Chinese market

According to a new study, Apple's iPhone market share in China continues to decline. The company lost its position and dropped out of the top five suppliers.

Here's What We Know

Analysts believe that there are two things that can change the situation: artificial intelligence and foldable devices. Despite sales growth, the iPhone is losing ground to competitors. In the second quarter of 2024, the smartphone market in China grew by 10% year-on-year. Although iPhone sales benefited from the 618 shopping festival, it was outpaced by Chinese competitors.

Apple was ranked sixth, and its market share decreased by 2% to 14%. This is the first quarter when domestic vendors dominate the top five, said Canalys Research analyst Lucas Zhong. Chinese companies are investing in high-end products and working closely with local suppliers. An example is the latest Magic V3 from HONOR, which uses GenAI.

Apple Intelligence is expected to be released this autumn with a number of powerful features, but will initially only support US English. Localisation of these services in China will be critical over the next 12 months.

The rumoured folding iPhone will become a reality in 2026. This device highlights the importance of foldable smartphones for the Chinese market. If Apple does not enter these markets, its share could continue to decline.

Source: Canalys Research