Apple’s position in China’s smartphone market has significantly weakened, with the company dropping to third place in 2024, behind local competitors Vivo and Huawei. This marks a stark contrast to 2023, when Apple briefly held the top spot, aided by strategic discounts and a market contraction that affected competitors more severely .France 24+3Reuters+3U.S. News Money+3Forbes
In 2024, Apple’s iPhone shipments in China declined by 17% year-over-year, totaling 42.9 million units, resulting in a 15% market share. This performance is attributed to several factors, including the absence of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, which eroded Apple’s competitiveness .Financial TimesReuters+2U.S. News Money+2Investing.com+2
In response, Apple has implemented various strategies to regain its competitive edge in the Chinese market. These include offering significant discounts on iPhone models, collaborating with local firms like Alibaba to introduce AI features, and enhancing retail experiences through trade-in programs and interest-free installment options . However, these efforts face challenges due to government subsidies favoring smartphones priced under 6,000 yuan, which typically exclude Apple’s premium models .DigitimesBusiness Insider+2Business Insider+2Digitimes+2
Despite these challenges, Apple remains committed to the Chinese market, as evidenced by CEO Tim Cook’s visits and the expansion of Apple’s R&D center in Shanghai. The company continues to explore avenues to adapt to local preferences and regulatory requirements, aiming to strengthen its position in one of its most crucial markets.MacRumors
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