According to recent data from research firm Canalys, Apple has been overtaken by local rivals Vivo and Huawei as China’s top smartphone seller in 2024. This shift follows a significant 17% decline in Apple's annual shipments. The company faced a tough year, with quarterly drops, including a notable 25% decrease in the last quarter, marking its worst annual sales contraction in the region. The decline highlights several factors affecting Apple's competitiveness in China, including the lack of artificial intelligence capabilities in the latest iPhones, especially in a market where ChatGPT isn't available. “This marks Apple’s worst annual performance in China,” said Canalys analyst Toby Zhu. “Apple’s premium market position faces multiple challenges: Huawei’s continuous flagship releases, the proliferation of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovations,” he added. After U.S. sanctions restricted Huawei's access to American technology in 2019, Apple enjoyed four years of consistent growth. However, these factors have recently shifted the competitive landscape. During the year, Vivo held a 17% market share, Huawei 16%, and Apple 15%. The numbers show that Apple is under increasing pressure from local brands in one of its largest worldwide markets. The tech company Huawei has bounced back strongly from the 2019 restrictions imposed by the United States. The business had a surge of 24% in fourth-quarter shipments after releasing premium phones in August 2023 using chipsets made in the country. The top three suppliers all had increases in fourth-quarter shipments; Xiaomi, which specializes in affordable handsets, had the highest rise at 29%, followed by Oppo at 18% and Vivo at 14%. In an unprecedented move to increase sales, Apple launched a four-day campaign in January through official channels, discounting iPhone 16 models by as much as 500 yuan ($68.50). Tmall, a major e-commerce portal in China run by Alibaba, also began running sales; customers could save up to 137 USD (or 1,000 yuan) on iPhone 16 models on Tmall. In 2024, despite Apple's challenges, yearly smartphone shipments in China increased by 4% to 285 million units, indicating persistent demand.