After enduring a slump in 2023, the smartphone market is showing signs of revival as we enter 2024. The latest reports from various market research firms reveal that both global and Chinese smartphone shipment volumes have experienced year-on-year growthApple continues to dominate the global smartphone sales charts, although the company encounters mixed fortunes across different markets.

In contrast, the Chinese smartphone market witnessed a significant decline, attributed mainly to the fierce competition from domestic brandsOn January 16, Canalys, a market research company, released figures indicating a 5% growth rate in China's smartphone market for the fourth quarter of 2024, resulting in shipments totaling 77.4 million unitsApple, riding on the seasonal demand for its iPhone products, topped the quarters with 13.1 million units soldHowever, this figure marked a considerable 25% drop compared to the previous year, underlining the intensified competition from local brands like Vivo and Huawei, which claimed the second and third spots, respectivelyOthers like Xiaomi and OPPO followed, finding themselves in the fourth and fifth positions in the domestic market.

Various Chinese brands such as Vivo, Huawei, Xiaomi, and OPPO reported growth rates of 14%, 24%, 29%, and 18% respectivelyAmber Liu, an analyst at Canalys, shared insights on the dynamics at play, acknowledging that while Apple retains its crown from Q4, it faces mounting competition from flagship models presented by local manufacturers.

Examining the full-year data for 2024 reveals a more stark competition landscapeThe rankings of the top five brands in the Chinese market were led by Vivo, Huawei, Apple, OPPO, and HonorVivo showed an 11% growth in shipments, while Huawei experienced a remarkable 37% increase; however, Apple saw a 17% decline in its shipment numbersInterestingly, it was just a year prior when Apple reigned supreme in the Chinese market.

This past year has clearly showcased the competitive pressure Apple faces in China

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To mitigate these challenges, the tech giant has resorted to aggressive discounting strategiesAs 2024 unfolded, Apple launched promotional campaigns that slashed prices for the iPhone 15 series by as much as 500 RMBRetail giants like Tmall and JD.com also joined the discounting frenzy, often offering better deals than Apple’s official online store.

The promotional activities continued, with dramatic price reductions during significant retail events like the '6.18' salesThere, the price of the iPhone 15 dropped from 5,999 RMB to 4,599 RMB, with some platforms even listing it for less than 4,500 RMBThe iPhone 15 Pro Max also saw a considerable price cut, plunging from 9,999 RMB to below 7,500 RMBFurthermore, during the Double 11 shopping festival, Apple took the unusual step of discounting the iPhone 16 series, which had just launched, and offered 500 RMB coupons for the entire lineup.

As early as 2025, Apple’s China website promoted a significant New Year’s sale campaign, dropping prices on mobile phones by up to 500 RMB and computers by up to 800 RMBThe promotional efforts also led the topic of price cuts to trend on social media, indicating not only Apple’s commitment to making its devices more appealing but also the pressures it faces within the Chinese market.

While these discounts and promotions can rejuvenate sales figures, they also signal the intense competition Apple finds itself navigatingOne industry observer stated, “The reductions on the official website do not offer any real advantage; they merely reflect the less than optimistic sales of Apple products over the past two years.”

Looking ahead, experts believe that the smartphone market in China will become even more competitive in 2025. Analyst Zhong Xiaolei of Canalys noted that Apple’s performance in Q4 2024 didn’t meet expectations, which suggests the company might maintain aggressive promotional strategies to stimulate demand in the near future.

On a global scale, however, Apple's performance remains commendable

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According to Canalys, the overall worldwide smartphone shipment figures reached 1.22 billion units in 2024, showcasing a 7% annual growthApple once again surpassed Samsung to claim the title of the world's top smartphone vendor, capturing 23% of the global market share in the fourth quarter.

Despite these positive metrics, Canalys cautioned that Apple’s total annual shipments showed a slight decline compared to the previous yearFurthermore, analyst Le Xuan Chiew pointed out that Apple enjoyed significant growth in emerging markets across Southeast Asia and India, further solidifying its global positionThe company has expanded its channel coverage and influence in the Asia-Pacific region, leveraging vigorous marketing strategies to seize on growth opportunitiesNevertheless, challenges persist in mature markets, where competition is pressing and upgrade cycles have lengthened.

Data from international research firm IDC also corroborates Canalys’s findings, reporting that Apple retained the top spot globally, followed closely by SamsungFor the Q4 2024, Apple topped the charts with a market share of 23.2%, while Samsung held 15.6%. Despite their dominance, both giants registered a decline in market share, underscoring the rapid growth of Chinese brands focusing on the budget segment.

Interestingly, there are recent rumors circulating that Apple is poised to launch the budget-friendly iPhone SE 4 in the spring of 2025. Market analysts view this release as a strategic move for Apple to regain market share while countering competition from both domestic and international sources.

Looking to the future, Zhong Xiaolei expressed that Apple might experience subdued shipment volumes in Q1 2025 due to new regulatory changes in the European Union concerning charging interfaces, along with limited rollout of its AI-powered offeringsThis situation could potentially impact market demand for Apple productsHowever, the long-term performance of the SE model in emerging markets and the success of new product forms will be crucial to watch, alongside the effectiveness of Apple's AI initiatives in broader deployment.

In light of the challenges ahead, Guo Mingqi, a respected analyst at Tianfeng International, has warned that Apple may face tougher trials in 2025. He points to stagnation in iPhone growth, ongoing challenges in its AI services, and a continued decline in its performance in China

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