Apple's iPhone sales decline 5% amid Chinese competition, AI delay
What's the story
Apple has seen a 5% decline in its global iPhone sales in the last quarter of 2024.
The decline is mainly due to tough competition from Chinese manufacturers and a delayed rollout of new artificial intelligence (AI) features in China.
However, despite these challenges, Apple's premium models have witnessed a sales increase and the company continues to do well in other markets like Latin America and India.
Market dynamics
Market share dips as Chinese rivals surge
According to data from Counterpoint Research, Apple's global market share for iPhones fell to 18% in 2024.
The tech giant also witnessed a year-long sales decline of 2%, while the overall market grew by 4% globally.
This change in market dynamics is partly attributed to Chinese Android device makers such as Xiaomi and Vivo, who have seen tremendous growth and are now challenging both Apple and its main rival Samsung Electronics Co.
AI delay
Apple's AI enhancements yet to reach China
Apple has been slowly rolling out its suite of AI enhancements since the iPhone 16's launch in September.
However, these features are still not available in China as the company is still looking for local partners who can help with offering services such as AI writing assistance and image generation.
This delay has led to a mixed response toward Apple's iPhone 16 series in China, Counterpoint director Tarun Pathak said.
Premium sales
Premium models gain traction in Chinese market
Despite a decline in overall unit sales in China, Apple has witnessed a spike in demand for its pricier Pro and Pro Max models.
These premium devices made up for more than half of all iPhone sales in the country.
This trend shows a strong consumer preference for high-end products in the Chinese market, even as it faces stiff competition from local brands.