AsianFin -- Apple Inc. experienced a 5% decline in global iPhone sales during the final quarter of 2024, losing market share to Chinese competitors amid the absence of Apple AI capabilities in its largest market outside the United States.
According to Counterpoint Research, the iPhone's global market share fell by 1 percentage point to 18% in 2024. Samsung Electronics Co. also ceded ground to rapidly expanding Chinese Android device makers such as Xiaomi Corp. and Vivo. For the full year, Apple reported a 2% drop in iPhone sales, while the overall smartphone market grew by 4%.
Based in Cupertino, California, Apple has been working to close the gap in artificial intelligence features, introducing incremental AI enhancements following the launch of the iPhone 16 in September. However, these features, including AI-powered writing assistance and image generation, remain unavailable in China as the company continues negotiating with local partners to enable these services.
Industry analysts have noted that some investors had overly optimistic expectations for Apple’s AI initiatives. This tempered outlook, combined with the delayed rollout of AI features in China, has further impacted Apple’s competitive standing in the region.
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