Connect with us

Apple

iPhone sales in China drop as Apple Intelligence rollout struggles

To launch Apple Intelligence smoothly, Apple needs to make a deal with the devil or a local AI company in China.

apple logo with apple products blurred in the background
Image: KnowTechie

Just a heads up, if you buy something through our links, we may get a small share of the sale. It’s one of the ways we keep the lights on here. Click here for more.

China has one of the biggest iPhone fan bases, which is why Apple has been at the top of the sales chart for years. 

However, according to recent market intelligence data, Apple has lost its crown in China, dropping to third place.

One of the biggest reasons behind this is Apple’s inability to properly roll out Apple Intelligence features in the country after the company was denied permission to use its generative AI model. 

The key factor in the iPhone’s sales drop in China is Apple’s Intelligence or the lack of it

Canalys reports that in the final quarter of the year, the iPhone shipments in China dropped by 25%,

Vivo led the market for the year with a 17% market share, shipping 49.3 million units.Huawei ranked second with 46.0 million units shipped, achieving an impressive year-on-year growth of 37%. Apple, OPPO and HONOR followed in third, fourth, and fifth place respectively, each holding a 15% market share.

This is a huge disappointment for Apple, which fell from the top spot with a market share of 19% in 2023 to third place with a 15% market share in 2024, which it shares with OPPO and HONOR. 

Five smartphones displaying various apps and notifications.
Image: Apple/KnowTechie

More importantly, where local brands offer seamless and state-of-the-art AI features, Apple has yet to strike a deal with China to roll out Apple Intelligence features, which is a big drawback for the company. 

The Financial Times cites it as one of the primary factors behind Apple’s market supremacy in China in 2024.

The figures come as the US technology company faces growing pressure from localpremium smartphone brands, particularly Huawei, which have benefited from patriotic buying and the ability to roll out artificial intelligence-powered features to their devices. the company’s Apple Intelligece service is not available on the Chinese mainland.

If you aren’t aware, China tightly controls all the country’s next-generation AI models to scrutinize the flow of online information and its sources.

China has blocked several popular Western platforms, including Facebook, X/Twitter, and Wikipedia.

Famously, Google pulled out of China instead of complying with the country’s censorship laws. 

Even last month, the Chinese government stated that the rollout of Apple Intelligence in China would be long and difficult unless the iPhone maker partnered with local AI companies.

Meanwhile, Apple is said to be in talks with Tencent and ByteDance to use their AI models, but we have no further info on the progress of the deal. 

What do you think about iPhone sales in China taking a hit? Do you think Apple can recover with better Apple Intelligence rollout? We want to hear your thoughts in the comments below, or via our Twitter or Facebook.

Follow us on Flipboard, Google News, or Apple News

Saurav loves writing and tech. So, after engineering, he didn't look back and embarked on a journey to become a tech writer. Saurav has worked for various tech websites across the globe. Saurav has recently joined Know Techie and is proud to be a part of it.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in Apple