English 
Spanish 
2 min read
0 comments
With a 17% drop in sales, Apple sees its market share shrink in China, while Huawei grows 37% and Vivo consolidates its leadership with an 11% increase in units distributed.
In 2024, China’s smartphone market underwent a dramatic transformation. Vivo and Huawei not only overtook Apple, but also became the clear leaders in the segment. The shift represents much more than numbers; it is a demonstration of how local strategies and innovation can redefine the competition.
While Apple faced challenges to adapt your technology From AI to the specifics of the Chinese market, Huawei and Vivo were picking up the pace with solutions that resonated with local consumers. But what exactly caused this turnaround?
Apple's downfall: Difficulties in the Chinese market
Apple, known worldwide for its innovation, has hit a stumbling block: AI. In the Chinese market, the absence of ChatGPT and limitations in the Apple Intelligence platform have weakened its position. To make matters worse, the company is struggling to compete with local solutions that are more aligned with the region's demands.
According to data from Canalys, Apple is expected to sell 42,9 million units in 2024, representing a 17% drop from the previous year. Its market share dropped four points, giving way for its competitors to gain ground.
Huawei and Vivo: Rising Giants
After facing difficulties caused by US sanctions, Huawei came back into the game with full force. In 2024, the brand grew an impressive 37% in distributed units, betting on premium devices that delighted Chinese consumers.
Vivo, in turn, grew 11% in 2024, reaching first place in the Chinese market. Strategic partnerships with operators and a strong presence in the entry and mid-range segments guaranteed its prominent position.
The role of the Chinese government in the smartphone market
The Chinese government also played a key role in this transformation. With an $11 billion subsidy program, consumers were encouraged to upgrade their devices. Those who handed in an old device when purchasing a new one received a 15% discount, making Vivo and Huawei products even more affordable.
Apple's Future in China: A Possible Turnaround?
Apple isn’t standing still. The company is in talks with giants like Tencent and Bytedance to integrate local AI models into its devices. This could be the key to winning back Chinese consumers.
To get back on top, Apple will need to go beyond AI. Innovative strategies, competitive pricing and greater alignment with local market needs will be essential.
