Apple Loses Top Spot in China: Stock Falls 4%
Apple’s stock (AAPL) fell 4% Thursday, marking its worst day since August. The company’s flagship iPhone has faced challenges in China. According to a report by Canalys, Apple lost its position as the leading smartphone vendor in the country.
iPhone Sales Drop 17% in China
Apple shipped 15% of the 284 million smartphones sold in China in 2024. This amounted to about 42.9 million iPhones. However, this figure represented a 17% decline from the previous year. The drop pushed Apple to third place in market share rankings.
Vivo Takes the Lead
Vivo claimed the top spot in China’s smartphone market with a 17% share. The company sold approximately 50 million units in 2024. Huawei followed closely in second place, shipping 46 million smartphones. Apple’s third-place finish reflects growing competition in this crucial market.
Apple Dominates Holiday Sales
Despite the overall decline, Apple performed well in the fourth quarter. The company sold 13.1 million iPhones during the holiday season. This period is traditionally strong for Apple, but sales were still down 25% year-over-year. The decline highlights increasing pressure from Chinese competitors.
Apple Intelligence Faces Regulatory Hurdles
Apple’s advanced AI feature, Apple Intelligence, has yet to impact sales in China. Regulatory barriers prevent the feature from being available on smartphones sold in the mainland. This limitation hampers Apple’s ability to differentiate itself from competitors.
Stock Down 12% from Peak
Apple’s share price has dropped 12% since its December peak. This decline followed the company’s earlier excitement about potentially reaching a $4 trillion valuation. The recent challenges in China weigh heavily on investor sentiment.
Conclusion
Apple’s struggle in China underscores the competitive nature of the smartphone market. With Vivo and Huawei gaining ground, the company must adapt to regain its dominance. Meanwhile, investors watch closely as Apple navigates these challenges.
SOURCE : Trading View
