Apple Inc. experienced a 5% decline in global iPhone sales during the final quarter of 2024, attributed to underwhelming AI upgrades and intensifying competition from Chinese smartphone manufacturers.
The company’s latest AI suite, Apple Intelligence, failed to meet market expectations, particularly in China, Apple’s largest market outside the US and Europe.
Despite the launch of the iPhone 16 series, which included the much-anticipated Apple Intelligence features, the rollout was staggered and incomplete in key markets like China4. This delay allowed Chinese competitors, such as Xiaomi and Vivo, to gain significant market share by offering advanced AI capabilities in their devices.
According to Counterpoint Research, Apple’s market share dropped to 18% in 2024, while the overall smartphone market grew by 4%2. Analysts noted that the absence of Apple Intelligence in China was a critical factor in the company’s declining sales.