South Korean media: Xiaomi and Huawei's rise, iPhone falls to fifth place in the Chinese market! On May 11th, South Korean media "The Herald Economy" published an article stating that Apple's iPhone is experiencing a decline in its market share in China's smartphone market. According to the latest data from market research institutions, due to intense competition from domestic brands and policy restrictions, Apple's market share in China has decreased. According to data from market research company Counterpoint Research, in the first quarter of 2024, Apple's market share in China was 15.7%, down 4 percentage points from 19.7% last year. During the same period, iPhone shipments fell by 19.1%, marking the worst performance since 2020. As a result, Apple dropped to fourth place, particularly as Huawei's shipments grew by 69.7%, narrowing the gap with Apple to 0.2 percentage points. The situation worsened further in the second quarter of 2024. According to Canalys' report, Apple's market share fell to 14%, dropping out of the top five. This contrasts sharply with China's smartphone market growing by 10%, exceeding 70.5 million units. Vivo (19%), OPPO, Honor, Huawei, and Xiaomi ranked in the top five, showing significant progress for domestic brands. Huawei ranked fourth with a growth rate of 41%. Apple's slump continued into the first quarter of 2025. According to IDC data, Apple ranked fifth with 9.8 million units shipped and a 13.7% share, but it was the only company in the top five to see a decrease in shipments, down 9%. On the other hand, Xiaomi ranked first with 13.3 million units shipped and a 18.6% market share, while Huawei ranked second with a 10% growth. Multiple factors have led to Apple's declining market share. Firstly, domestic brands such as Huawei and Xiaomi have made remarkable progress, especially the increasing preference of young consumers for domestic brands. Despite US sanctions, Huawei remains highly competitive in the high-end market through the development of its own chipsets and the launch of the Mate 60 series. Secondly, Apple's high pricing strategy is also considered a reason for the decline in market share. China's subsidy policies for products below 6000 yuan have prevented most models except the iPhone 16 from benefiting, weakening price competitiveness. Apple launched aggressive promotional activities, including discounts of up to 23% to compensate for this, but it did not stop the decline in shipments. The lack of artificial intelligence features is another factor. Apple has yet to introduce "Apple Intelligence" in China, while competitors like Huawei are actively utilizing AI features to attract consumer demand. Apple has launched aggressive promotional activities between 2024 and 2025, including discounts of up to 1300 yuan RMB. It is also negotiating cooperation with Baidu, Tencent, and ByteDance to introduce AI features in China. Apple is pushing for the introduction of AI features and price adjustments to restore its position in the Chinese market. However, due to the continuous growth of domestic brands, a short-term rebound is expected to be difficult. [Image source: //p3-sign.toutiaoimg.com/tos-cn-i-ezhpy3drpa/af3c1a098c97401a8e76a1ddd05ce05f~tplv-obj:1920:1080.image?_iz=97245&bid=15&from=post&gid=1831814265716747&lk3s=06827d14&x-expires=1754697600&x-signature=v%2FA8zr8WBglIEitL05qIcdayyIw%3D] Original source: https://www.toutiao.com/article/1831814265716747/ Disclaimer: The article solely represents the author's viewpoint.