Apple’s grip on the Chinese smartphone market has loosened, as shipments of its devices fell by 25% in the fourth quarter of 2024. According to data from research firm Canalys, Apple shipped 13.1 million iPhones during this period, achieving a 17% market share. However, its long-standing dominance faces growing challenges from Huawei, which has matched Apple’s market share at 17% with shipments of 12.9 million units.
This development highlights a pivotal moment for Apple, which relies heavily on China as one of its largest global markets.
Huawei’s Comeback Strengthens Competition
Huawei’s return to the premium smartphone segment in August 2023 has significantly impacted Apple’s market position. The Chinese tech giant has leveraged locally-made chipsets to bolster its product offerings, leading to a 24% surge in shipments during the fourth quarter of 2024.
Amber Liu, a Canalys analyst, remarked, “While Apple and its iPhone 15 series maintained their leadership in the fourth quarter, they face mounting pressure from domestic flagship devices.”
Huawei’s resurgence has intensified competition, especially in the high-end market, forcing Apple to rethink its strategies to retain its foothold.
Apple’s Response: Discounts and Promotions
To counter declining sales, Apple launched rare promotional campaigns in early January 2025. The company offered discounts of up to 500 yuan ($68.50) on iPhone 16 models through its official channels during a four-day sale. Major Chinese e-commerce platforms, including Alibaba’s Tmall, also participated, slashing prices on iPhone 15 devices by as much as 1,000 yuan ($137).
These discounts represent Apple’s effort to maintain its appeal among Chinese consumers amid heightened competition. Additionally, Apple has expanded its trade-in programs, interest-free installment plans, and retail experiences to strengthen customer retention.
China remains a critical battleground for global smartphone makers due to its massive consumer base and high demand for premium devices. Huawei’s recovery from U.S. sanctions, coupled with its focus on innovation in locally-manufactured components, has created significant momentum for the brand.
Apple’s reliance on seasonal promotions and pricing strategies may help in the short term but raises questions about its long-term competitiveness in China.
Looking Ahead: Challenges and Opportunities
Apple faces a delicate balancing act in China. While its brand loyalty and ecosystem advantages remain strong, the resurgence of local competitors like Huawei could erode its market dominance. Moving forward, Apple may need to innovate further in hardware and software offerings, tailor its strategies to local consumer preferences, and potentially invest more heavily in regional partnerships.
For Huawei, the challenge lies in sustaining its growth momentum and continuing to innovate amid lingering geopolitical and supply chain uncertainties.
The battle for smartphone supremacy in China has never been fiercer. Apple and Huawei are neck-and-neck, each commanding 17% of the market as of Q4 2024. While Apple’s promotional efforts highlight its adaptability, Huawei’s resurgence underscores its determination to reclaim its place as a dominant force in the market.
