Apple and Samsung Experience Decline in Smartphone Shipments due to Increased Competition from Chinese Brands

January 16, 2025 TruthUSA

Apple maintained its top position in the global smartphone market in 2024 with a market share of 18.7 percent, closely followed by Samsung at 18 percent.

Both Apple and Samsung experienced a decline in smartphone shipments in the fourth quarter of 2024, attributed to intense competition from Chinese smartphone manufacturers, as per the latest data from International Data Corporation (IDC).

The global smartphone market witnessed a 2.4 percent growth year-on-year in the fourth quarter of 2024. However, iPhone shipments dropped by 4.1 percent to 76.9 million units, while Samsung’s shipments fell by 2.7 percent to 51.7 million units, as reported by IDC on Jan. 13 through its research.

In the fourth quarter of 2024, China-based mobile phone brands, including Xiaomi, Oppo, Vivo, and others, accounted for 56 percent of global smartphone shipments, setting a new quarterly record.

According to Francisco Jeronimo, IDC’s vice president for EMEA Client Devices, while these brands primarily target China and Asia, they are rapidly expanding in Europe and Africa by emphasizing their performance in low-end and mid-range devices. Huawei, in particular, stands out with a focus on high-end and premium segments within China.

With a market share of 18.7 percent, Apple led the smartphone market in 2024, followed by Samsung at 18 percent and China’s Xiaomi at 13.6 percent, based on IDC data.

In 2024, Apple saw a decline in iPhone sales in China, dropping from first to third place in the market, trailing behind Vivo and Huawei, according to Canalys data.

The Chinese government’s restrictions, such as banning government and state-owned company employees from using iPhones and other foreign devices at work in December 2023, may have influenced these trends.

In October 2024, Apple introduced Apple Intelligence after releasing the iPhone 16. However, due to Chinese regulations, none of the AI features are accessible in China, potentially impacting new iPhone sales in the Chinese market. According to Apple’s website, “Apple Intelligence will not currently work for supported devices purchased in China mainland.”

Commenting on the matter, Chen Shih-min, an associate professor of political science at National Taiwan University, stated to The Epoch Times on Jan. 12 that the Chinese regime’s promotion of domestic products negatively impacts Apple’s sales in China. He added that Chinese smartphones, like Xiaomi, OPPO, and Vivo, are more affordable, contributing to their popularity.

There have been allegations of intellectual property theft against Huawei and other Chinese tech companies over the years, accusing them of copying designs and technology from foreign firms without permission.

Chen noted that since Apple shifted its production and supply chain to China over a decade ago, Chinese companies have acquired some of Apple’s manufacturing technologies. Consequently, Huawei, Xiaomi, and others have utilized these technologies and China’s affordable labor to produce cheaper smartphones.

Moreover, on Jan. 15, the Chinese government expanded consumer subsidies to include smartphones priced below RMB 6,000 ($835). However, these subsidies benefit Chinese smartphones predominantly, excluding high-end foreign devices like iPhones.

According to Su Tzu-yun, a researcher at Taiwan’s Institute for National Defense and Security Research, Chinese smartphones, such as Xiaomi and Huawei, meet the basic requirements of most users with features like online streaming and quality photography, which are crucial for consumers.

An electronic billboard shows an ad for Chinese smart phone maker Xiaomi on a building in a popular shopping area Beijing, China, on Nov. 8, 2024. In its most significant set of fiscal measures, China has announced a $1.4 trillion plan in hopes of stimulating its economy. (Kevin Frayer/Getty Images) — An electronic billboard shows an ad for Chinese smart phone maker Xiaomi on a building in a popular shopping area Beijing, China, on Nov. 8, 2024. In its most significant set of fiscal measures, China has announced a $1.4 trillion plan in hopes of stimulating its economy. Kevin Frayer/Getty Images

Concerns have been raised by the United States, the tech industry, and international organizations regarding the security risks associated with Huawei and other Chinese-made smartphones, which reportedly contain backdoors that can be exploited for surveillance by the Chinese government.

Reporters Without Borders cautioned journalists worldwide in 2022 to avoid Huawei smartphones, citing strong evidence of privacy and security threats.

Su highlighted the presence of backdoor programs in Chinese smartphones, not detectable by standard mobile phone software, posing risks to users’ privacy and financial security.

An employee works on a mobile phone production line at a Huawei production base during a media tour in Dongguan, China's Guangdong province, on March 6, 2019. (WANG ZHAO/AFP/Getty Images) — An employee works on a mobile phone production line at a Huawei production base during a media tour in Dongguan, China’s Guangdong province, on March 6, 2019. WANG ZHAO/AFP/Getty Images

He proposed that democratic nations collaborate to conduct thorough inspections on these Chinese smartphones to identify any security vulnerabilities. Su anticipated stricter scrutiny of Chinese devices under the incoming Trump administration.

Yeh Yao-Yuan, from the University of St. Thomas, noted that Apple and Samsung have not ceded their dominance to Chinese smartphones in developed markets like the United States. He added that the higher prices of iPhones compared to Chinese alternatives may steer consumers in developing countries towards the latter.

While Chinese smartphones could see a rise in global market share, particularly in regions like Central and South America, Africa, and the Middle East, Yeh predicted limited growth in markets like the United States, Canada, and Europe, where interest in Chinese devices is lower.

Luo Ya and Reuters contributed to this report.

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