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On Jan 13, Apple Inc. (AAPL, Financial) saw its iPhone market share fall to 18% in 2024, according to Counterpoint Research. Intensifying competition from Chinese smartphone manufacturers such as Xiaomi and Vivo is thought to be behind the decline.
iPhone sales fell 2% year-over-year, falling behind the entire smartphone market, which grew by 4%. Apple's iPhone 16 series failed to launch in September 2024 with heavy demand, largely because its products fell short of competitors on the show, according to reports.
In China, Apple's flagship Apple Intelligence AI features were not available. While this vacuum has made the company vulnerable to competitors like Xiaomi and Vivo, the latter has successfully leveraged AI-infused enhancements to advertising for the tech-savvy consumer.
Apple finds itself in the middle of a battle with mid-range and entry-level competitors. Growth regions like China can be critical for addressing these challenges and bringing compelling innovations in its product lineup, which will likely ride the market share trajectory in 2025.
Apple needs to properly realign its market strategy and product features to ward off increasing competition in a dynamic global smartphone market, the report finds.
This article first appeared on GuruFocus.