iPhone Loses Global Market Share With Apple AI Absent in China

The iPhone, once a dominant force in the global smartphone market, has been facing a decline in market share, particularly in China. According to a report by Ming-Chi Kuo, a prominent industry analyst, iPhone shipments in China fell by 10-12% year-over-year in December 2024, even as the overall smartphone market in the country remained stable. This decline is likely due to the perceived lack of innovation in Apple's latest models and the absence of AI features, which have become increasingly important to consumers in China.



Apple's cautious approach to AI integration has left it behind competitors like Huawei and Samsung, which have been incorporating AI features into their smartphones. The company has been struggling in the Chinese market since the start of this year due to a lack of innovation in terms of design and the absence of AI features. This is in contrast to competitors like Huawei as well as foldable smartphones from various brands like Oppo and Samsung. The company reported a 13 percent decline in sales in China in December last year, and up to 40 percent of sales slumps in the past few weeks.



Geopolitical tensions, particularly those between the United States and China, have also played a significant role in Apple's declining market share in China. The return of Donald Trump to the White House in 2025 is expected to bring renewed geopolitical tensions, including potential tariffs on countries like Mexico and Canada. This uncertainty can lead to market volatility and negatively impact Apple's sales in China. Additionally, Trump's history of making market-moving social media posts could also inject renewed volatility into markets, potentially affecting Apple's sales in China.

To regain market share in China, Apple could introduce several AI features that would appeal to Chinese consumers. These features could include advanced image editing and animation, enhanced Siri and Spotlight with large language models, AI-driven health and fitness features, AI-enhanced augmented reality (AR) experiences, and AI-driven personalization and recommendations. By integrating these AI features into its products, Apple can differentiate itself from competitors and appeal to Chinese consumers who value innovation, convenience, and personalization.



In conclusion, Apple's declining market share in China can be attributed to a lack of innovation, particularly in the realm of AI features, as well as geopolitical tensions between the United States and China. To regain market share, Apple must introduce AI features that appeal to Chinese consumers and differentiate its products from competitors. By doing so, Apple can tap into the growing demand for AI-powered smartphones in China and reverse its declining market share.