iPhone Market Share Drops as Apple Lacks AI in China

In the final quarter of 2024, Apple Inc. saw a 5% decline in iPhone sales, leading to a loss in global market share.  This drop highlights the company's struggle to gain traction in China, its largest market outside the US, amid the absence of Apple Intelligence, an AI technology pivotal for competing in the region.  Apple's market share slipped to 18%, a 1% decrease, according to data from Counterpoint Research. Samsung, its biggest rival, also faced similar challenges, with its market share shrinking in favor of fast-growing Android device manufacturers from China.  Companies like Xiaomi and Vivo have gained ground, with their innovative offerings attracting Chinese consumers.  Despite these setbacks, the overall smartphone market grew 4% globally in 2024, indicating that the decline in Apple’s sales was part of a broader trend.  For the year, Apple reported a 2% drop in iPhone sales, a sign that the absence of cutting-edge technology, like AI, is affecting its competitiveness in China. Apple continues to seek an AI partner in China, hoping to enhance its products and services to meet local demands.