STORY: Apple has been dethroned as the top smartphone seller in China.
Figures from research firm Canalys on Thursday show it was overtaken by local rivals in 2024.
Apple’s market share declined to 15%, with iPhone sales down by a quarter over the final three months of the year.
It was the firm’s worst-ever annual sales decline in the country and comes amid multiple headwinds.
Analysts say the lack of AI on its latest models is one big factor.
In the U.S. it offers handsets featuring so-called “Apple Intelligence”.
But that integrates ChatGPT, which isn’t approved for use in China.
Competition is also steadily mounting, with Chinese brand Vivo now the market leader on a 17% share.
Huawei was just behind on 16%.
The firm has rapidly gained ground after returning to the high-end phone market with models powered by local chips.
Meanwhile, Apple has sought to fight back with rare discounts.
Earlier this month it offered close to $70 off some iPhones bought through its own channels.
Major Chinese e-commerce platforms then followed suit with price cuts of their own.
Alibaba’s Tmall announced discounts of up to $137.
Researchers at Canalys say Apple is also making other moves, including beefing up trade-in options and expanding interest-free payment plans.
But Thursday’s numbers suggest the firm faces a big battle retaking the lead in one of its most important markets.
