Apple's grip on the global smartphone market is showing signs of weakening as Chinese manufacturers gain ground. The tech giant's market share dropped to 18% in 2024, down from 19% in the previous year, according to new data from Counterpoint Research.
While the broader smartphone market grew by 4%, Apple experienced a 2% decline in year-over-year sales. In contrast, Chinese manufacturer Xiaomi saw an impressive 12% growth during the same period.
The lukewarm reception of the iPhone 16 series, particularly in China, has been attributed to the limited availability of Apple Intelligence features at launch. However, the company maintained strong performance in emerging markets like Latin America.
Despite overall sales declining, Apple's premium models continued to attract buyers. The Pro and Pro Max variants are expected to capture over 50% of the Chinese market share in Q4 2024, indicating a growing consumer preference for ultra-premium devices.
Samsung retained its position as the global market leader, driven by strong demand for its AI-equipped S24 series and A-series smartphones. Chinese brands Huawei, Honor, and Motorola emerged as the fastest-growing companies among the top 10 smartphone manufacturers.
Apple began rolling out Intelligence features through software updates since October, but early indicators suggest these updates haven't sparked significant device upgrades. A recent survey revealed that many iPhone users found Apple Intelligence added minimal value to their experience, though this perception could change as the technology evolves.
The company is reportedly planning major Siri improvements in April, which could help address current limitations in its AI offerings. However, industry analysts note that Apple Intelligence's appeal has diminished compared to cloud-based services like ChatGPT.