Friday, March 14, 2025

Apple’s Market Share Crumbles in China as Huawei and Xiaomi Rise

On March 4, visitors at the Mobile World Congress (MWC) 2025 in Barcelona, Spain, explored the Xiaomi 15 Ultra, developed in collaboration with German camera brand Leica, at the Xiaomi booth. MWC is one of the world\'s three major electronics and IT exhibitions, along with CES in the U.S. and IFA in Germany, organized by the Global System for Mobile Communications Association (GSMA). / News1
On March 4, visitors at the Mobile World Congress (MWC) 2025 in Barcelona, Spain, explored the Xiaomi 15 Ultra, developed in collaboration with German camera brand Leica, at the Xiaomi booth. MWC is one of the world’s three major electronics and IT exhibitions, along with CES in the U.S. and IFA in Germany, organized by the Global System for Mobile Communications Association (GSMA). / News1

Apple’s Struggles Continue in China

Apple’s declining market position in China continues to worsen. Having already struggled with plunging smartphone sales, the U.S. tech giant is now losing ground in tablet devices, wireless earbuds, and other wearables.

According to market research firm IDC, on Wednesday, Apple’s wireless earbud shipments in 2024 fell by approximately 30% yearly, while its tablet market share declined.

China’s total wireless earbud shipments in 2024 reached 72.35 million units, an increase of 5.6% compared to the previous year. However, Apple’s shipments plummeted by 31.7%, causing its market share ranking to drop from second to fourth place.

Meanwhile, Xiaomi secured the top spot by boosting shipments by 46.4% with its affordable and high-value products. Huawei, which overtook Apple for second place last year, saw an even more significant surge of 52.9%.

Apple Loses Ground to Cost-Effective Chinese Brands

Cost-effective offerings from local Chinese brands are increasingly overshadowing Apple’s high-priced products. Apple’s AirPods are priced at 999 yuan (approximately $140), while AirPods Pro 2 costs around 1,899 yuan (approximately $265). In contrast, Xiaomi, Huawei, and other Chinese brands offer a wide range of products starting at around 100 yuan (approximately $14), effectively pushing Apple out of the domestic market. The battle over affordability extends beyond earbuds. Apple is also losing ground in the tablet market to domestic Chinese competitors.

China’s total tablet shipments in 2024 increased by 4.3% to 29.85 million units, yet Apple’s market share dropped by 7 percentage points to 26.6%, losing the top position to Huawei and falling to second place. Huawei’s market share rose to 32.3%, up 5.7 percentage points, overtaking Apple as the new market leader. Apple’s tablets are primarily priced at 4,000 yuan (approximately $560) or higher, whereas Huawei and Xiaomi offer a variety of products starting at around 1,000 yuan (approximately $140), providing more affordable options for consumers.

Huawei and Xiaomi Overtake Apple in Tablets and Wireless Earbuds

Apple’s smartphone dominance in China is also rapidly fading. In 2024, Apple’s smartphone shipments declined by 5.4%, while Huawei’s shipments surged by 50.1%, surpassing Apple. As device ecosystem connectivity becomes increasingly important—including computers, tablets, smartphones, and wireless earbuds—the interlinked impact of Apple’s declining market share is accelerating.

Huawei has been expanding its HarmonyOS, a unified software platform that seamlessly integrates with smartphones, electric vehicles, and various electronic devices. This has helped Huawei rapidly expand its customer base.

The economic downturn in China has also increased the number of price-conscious consumers, further intensifying Apple’s struggles in the country.

According to Counterpoint Research, Apple’s iPhone sales in China dropped by 18.2% yearly in Q4 2024, marking the country’s most significant quarterly decline in history. In response, Apple launched an unprecedented large-scale discount campaign in China ahead of the Lunar New Year in January, highlighting its desperate measures to counter its weakening position in the Chinese market.

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