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Apple defies slowdown with higher iPhone shipments in China thanks to iPhone 17

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Apple’s shipments in China rose slightly in the third quarter, boosted by strong demand for its new iPhone 17 series, according to data released by research firm IDC. Shipments grew 0.6% year-on-year to 10.8 million units, giving Apple a 15.8% share of China’s smartphone market and securing its position as the country’s second-largest vendor.

Overall, China’s smartphone market continued to face weak demand, with total shipments falling 0.6% to 68.4 million units in the third quarter, following a 4% drop in the previous quarter. Despite the sluggish environment, Apple outperformed rivals, becoming the only brand among China’s top three vendors to post growth during the period.

IDC analyst Will Wong credited the success to Apple’s “value-for-money” iPhone 17 base model, which appealed to cost-conscious consumers while maintaining premium quality. By contrast, Huawei’s shipments slipped 1% to 10.4 million units, placing it third, and Xiaomi’s fell 1.7% to 10 million units, ranking fourth. Market leader Vivo saw a sharper decline of 7.8%, down to 11.8 million units.

IDC expects the Chinese smartphone market to recover modestly in early Q4, driven by the release of new flagship models launched in recent months.

Apple, Samsung Smartphone Shipments Decline Amid Rising Chinese Competition: IDC Report

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Global smartphone shipments for Apple and Samsung declined in the fourth quarter of 2024 as Chinese manufacturers, including Xiaomi, Oppo, and Honor, intensified competition, according to preliminary data from the International Data Corporation (IDC).

The global smartphone market has rebounded after two years of decline, driven by the aggressive expansion of Chinese brands into low-end devices and their dominant focus on the domestic market. Chinese companies shipped 56% of global smartphones in the fourth quarter, marking their highest combined volume ever in a single quarter.

Apple and Samsung See Shipment Declines

Apple’s shipments fell by 4.1% to 76.9 million units, while Samsung’s declined by 2.7% to 51.7 million units during the same period. Despite the downturn, Apple maintained its position as the top global smartphone brand for 2024 with an 18.7% market share, followed closely by Samsung at 18%.

Meanwhile, Xiaomi, which held 13.6% of the market, showed the fastest growth among the top five smartphone brands, with a 15.4% increase in shipments. In contrast, Apple’s total shipments for the year dropped by 0.9%, and Samsung’s fell by 1.4%.

Chinese Manufacturers Drive Market Growth

Chinese smartphone makers leveraged their competitive edge in low-end and mid-range devices to expand their market presence, particularly in Europe and Africa. Their focus on affordability and value for money has resonated with consumers, allowing them to achieve record-high shipments in the fourth quarter.

Nabila Popal, senior research director for worldwide client devices at IDC, expressed optimism for continued growth in 2025. However, she also highlighted industry uncertainties due to the possibility of new tariffs from the incoming U.S. administration.

Foldable Smartphone Market Struggles

Despite growth in several regions, demand for foldable smartphones has been underwhelming. IDC research director Anthony Scarsella noted that even with heavy promotions and marketing, consumer interest in foldables has remained flat. As a result, smartphone makers are reallocating research and development budgets away from foldable devices.

The evolving landscape of the global smartphone market underscores the increasing influence of Chinese brands and the shifting consumer demand for innovative yet cost-effective options.