Despite global smartphone market growth, Apple experienced a 5% decline in iPhone sales last quarter, driven by weak demand for Apple Intelligence.
Decline in iPhone Market Share
In the last quarter, iPhone's market share fell by 1% to 18% in 2024. Chinese competitors, including Xiaomi and Vivo, gained market share at the expense of Apple and Samsung. According to IDC, Apple shipped 4.1% fewer smartphones, while the overall market grew by 2.4%.
Chinese Market and Apple Intelligence
Apple Intelligence is not yet available in China, making it less attractive to local buyers. The company is seeking partners to implement AI features in China, Apple's biggest market outside the US and Europe. Sales of high-end models like Pro and Pro Max are increasing, despite overall challenges.
Competition from Chinese Manufacturers
Chinese smartphone makers are developing their own AI tools, posing additional challenges for Apple in this segment. IDC's Francisco Jeronimo noted that Chinese companies reached record shipment volumes, capturing 56% of the global smartphone market.
The decline in iPhone sales is attributed to the limited rollout of Apple Intelligence and growing competition from Chinese brands. To maintain its position in China, Apple must tailor its offerings to meet local market needs.
