Investing.com -- Apple’s iPhone sales in China plunged 18.2% during the December quarter, marking a significant setback in one of its most crucial markets, according to a report by Counterpoint Research cited by Bloomberg.
The decline saw Apple (NASDAQ:AAPL) lose its top spot to Huawei Technologies Co. in the world's largest smartphone market, slipping to third place with roughly a sixth of the market share.
The dip in China contributed to a 5% global decrease in iPhone sales during the critical holiday shopping period.
The performance is said to highlight a mixed reception for Apple's latest iPhone lineup, which initially enjoyed a strong launch but later lost momentum.
A key issue for Apple has reportedly been the limited availability of its new artificial intelligence features in China, as the company has yet to finalize partnerships with local tech firms like Baidu Inc (NASDAQ:BIDU). and Tencent Holdings Ltd (F:NNND). to support on-device and cloud AI infrastructure.
Meanwhile, Huawei capitalized on the opportunity with the launch of its Mate 70 handsets, which offer a US technology-free experience through the HarmonyOS Next (LON:NXT) operating system.
The move, supported by domestically produced chips, is said to have helped Huawei regain its position in the premium segment of the Chinese market.
The broader Chinese smartphone market experienced a decline in the final quarter of 2024 after enjoying growth for most of the year.
"This is the first time since the US ban that Huawei regained the leading position," said Counterpoint analyst Mengmeng Zhang, noting a 15.5% year-over-year increase in Huawei's sales driven by the mid-end Nova 13 and high-end Mate 70 series.