Apple's (AAPL.US) sales in China plummeted by 25% in Q4 2024, and Huawei is now just one step away from the top.

Research firm Canalys showed Apple (AAPL.US) saw a 25% year-on-year decline in smartphone shipments in China in the fourth quarter of 2024, as the iPhone maker faced growing pressure from Huawei's recovery in one of its largest markets. Apple shipped 13.1 million units in the period, according to Canalys data released on Thursday, barely maintaining its market leadership with a 17% share. Huawei took 17% of the market with 12.9 million units, according to Canalys data, tied with Apple for market leadership. Huawei's shipments grew 24% in the fourth quarter, becoming a particularly strong challenger since its return to the high-end market in August 2023 with locally manufactured chipsets. Under increasing competition, Apple took rare discount measures to stimulate sales. The company launched a four-day promotional campaign from January 4 to 7 in China, offering up to Rmb500 (US$68.5) discounts on iPhone 16 models through official channels. Major e-commerce platforms also followed suit, launching their own promotions. Alibaba's Tmall announced discounts of up to Rmb1,000 (US$137) on iPhone 15 series devices. "While Apple and its iPhone 15 series maintained its leadership in the fourth quarter, it faced growing pressure from domestic flagship devices," Canalys analyst Amber Liu said. In addition to seasonal promotions, Apple is enhancing its competitive position and user retention in the Chinese high-end market through improved retail experiences, trade-in programs and expanded interest-free installment plans." China's smartphone shipments in 2024 will grow 4% year-on-year to 285 million units.