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Home News Equities

Apple’s China Smartphone Crown Slips as Huawei Makes Historic Comeback

by Team Lumida
January 21, 2025
in Equities, Markets
Reading Time: 3 mins read
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apple logo on blue surface

Photo by Sumudu Mohottige on Unsplash

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Key Takeaways:

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• Apple’s iPhone sales dropped 18% in Q4 2024
• Huawei reclaimed market leadership for first time since US ban
• Overall Chinese smartphone market contracted 3.2%
• AI capabilities emerging as key competitive factor

What Happened?

Apple experienced a substantial 18% decline in iPhone sales in China during Q4 2024, dropping to third place behind Huawei and Xiaomi. Huawei achieved a remarkable 15.5% sales growth, propelled by successful launches of its Nova 13 and Mate 70 series. The overall Chinese smartphone market contracted by 3.2%, marking the only quarterly decline in 2024.

Why It Matters?

This shift represents a significant disruption in the world’s largest smartphone market. Apple’s struggle highlights growing competitive pressures from domestic manufacturers who are successfully expanding into the premium segment. The lack of AI services for Chinese iPhone users presents a strategic disadvantage, while local brands leverage AI capabilities to attract consumers. Huawei’s resurgence, despite previous US sanctions, demonstrates the resilience of Chinese tech companies and changing consumer preferences.

What’s Next?

Market analysts maintain a cautiously optimistic outlook for 2025, projecting low-single-digit growth despite economic challenges. Key developments to watch include:

  • Apple’s potential partnerships with Chinese AI companies
  • Huawei’s ability to maintain momentum in the premium segment
  • Impact of Xiaomi’s EV venture on its smartphone brand value
  • Overall consumer spending patterns in China’s smartphone market

The competitive landscape will likely continue evolving, with AI capabilities and premium segment positioning becoming increasingly crucial factors for success in the Chinese market.

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© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018