New research into smartphone shipments shows Apple remains the top brand for market share worldwide, but it has slipped in China, a crucial market, and the blame likely lies in its inability to launch Apple Intelligence there.
Apple will take solace in its 23% market share worldwide at the end of 2024, according to the numbers from analysts IDC, which although down from the end of 2023, is still far ahead of rival Samsung in second position with 15% market share.
It’s a different story in China though. At the end of 2023 Apple had 19% market share of mobile shipments and topped its rivals according to research from Canalys, but at the end of 2024 Apple had fallen to third position with 15% market share. It has been overtaken by Huawei with 16% market share, and leaders Vivo with 17% market share.
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Apple Intelligence woes
One of the reasons for Apple’s downward slide in China is likely to do with Apple Intelligence. The company has been unable to release its AI-powered tools in China due to extensive regulatory requirements and stringent checks. Local brands, such as Huawei and Vivo, have released smartphones with AI features.
A likely course of action for Apple to solve its problem is to forge local partnerships with AI companies, which will help it replace ChatGPT — which is part of Apple Intelligence and not available in China — and enable AI features in China. A report has linked Apple with Tencent, developer of the ubiquitous WeChat app, and ByteDance, the developer behind TikTok. Both have invested heavily in AI. Apple also has plans to open a new data-processing center in Shanghai, which may assist in its local AI efforts.
Samsung, despite being Apple’s biggest rival globally, isn’t a top-five brand in China, but is apparently further ahead in its AI efforts than Apple. It has worked with technology company Baidu on its AI features, and has recently launched an AI-intensive version of its virtual assistant Bixby only in China. Samsung will launch the Galaxy S25 series in January, and Galaxy AI will certainly play a big part in the device’s appeal.
Apple will need to follow Samsung’s lead in cementing local, and therefore already government approved, AI partners if it wants to claw back superiority in China. It will also need to continually improve and further build on Apple Intelligence globally, if it wants to stay ahead of Samsung and the incoming AI-heavy Galaxy S25.
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