2024 China Smartphone Market Annual Report: vivo Takes the Crown, Huawei Shows Strong Growth, Apple's Innovation Deficit Leads to Sales Decline

2024 China Smartphone Market Annual Report: vivo Takes the Crown, Huawei Shows Strong Growth, Apple's Innovation Deficit Leads to Sales DeclineApple held the top spot in Q4 2024 with 13.1 million units shipped, maintaining its market share but experiencing a 25% year-on-year decline

2024 China Smartphone Market Annual Report: vivo Takes the Crown, Huawei Shows Strong Growth, Apple's Innovation Deficit Leads to Sales Decline

In January 2025, Canalys released its Q4 2024 and full-year report on China's smartphone market, revealing intense competition and significant changes throughout the year. The report showed a 5% year-on-year increase in Q4 shipments, reaching 77.4 million units, driven by new product launches, government subsidies, and promotional events like "Double Eleven." However, the competitive landscape was complex and multifaceted.

Q4 2024: Apple Remains Top, but Growth Falters

Apple held the top spot in Q4 2024 with 13.1 million units shipped, maintaining its market share but experiencing a 25% year-on-year decline. This was primarily due to a lack of innovation in the iPhone 16 series, weakening its competitiveness, and the strong rise of other manufacturers. vivo and Huawei secured second and third place respectively, each with a 17% market share. Huawei demonstrated robust growth with a year-on-year increase exceeding 20%. Xiaomi ranked fourth with 12.2 million units shipped, achieving the highest year-on-year growth among top brands at 29%. OPPO followed in fifth place with 10.6 million units shipped, showing an 18% year-on-year increase.

New flagship processors launched by Qualcomm and MediaTek in Q4 spurred most manufacturers to update their flagship products. Combined with various promotional offers, this stimulated consumer demand for upgrades, contributing to the significant growth in Q4 shipments.

Full Year 2024: vivo Dominates, Huawei Close Behind, Apple Significantly Down

For the full year 2024, vivo secured the top spot with 49.3 million units shipped (17% market share), a 11% year-on-year increase, leveraging its strong online and offline channels and comprehensive product line strategy. While some controversies arose regarding screen glare on its flagship models in Q4, this didn't significantly impact overall sales.

Huawei came in second with 46 million units shipped, a remarkable 37% year-on-year growth. In 2024, Huawei resumed its normal new product release cycle, launching the highly anticipated Pura70 and Mate70 series, along with its first tri-folding screen phone, and significantly increased supply to meet greater consumer demand.

Apple shipped 42.9 million units, a 17% year-on-year decline. The iPhone 16 series lacked innovation in design and functionality, and the absence of Apple's smart ecosystem in the domestic market further limited its performance. Despite various promotional activities through e-commerce platforms, the lack of innovation remained a significant challenge; Apple reportedly plans major product overhauls in 2025.

OPPO and Honor ranked fourth and fifth with 42.7 million and 42.2 million units shipped respectively, both experiencing a 3% year-on-year decline. Both brands maintained relatively stable sales despite some fluctuations in recent years.

2024 Market Summary: Stable Growth and Innovation Challenges Coexist

2024 saw major smartphone manufacturers enter relatively stable product update cycles with steady product improvements, and strong performance from domestic brands. Insufficient innovation was the main reason for Apple's sales decline. Xiaomi, focusing on its automotive business, did not rank in the top five for the full year, but its Q4 performance suggests a potential rebound in 2025.

It's noteworthy that almost all manufacturers launched their own AI applications and features, with generative AI considered a crucial future direction for the industry. Integrating AI technology effectively into product innovation and enhancing everyday user convenience will be a key challenge for all manufacturers in 2025.

In-Depth Analysis: Market Competition and Future Trends

Canalys' data reveals fierce competition in the 2024 Chinese smartphone market. vivos comprehensive product line and strong channel advantages secured its leading position, while Huawei's robust growth propelled it to a close second. Apple, hampered by innovation shortcomings, saw its market share decline. OPPO and Honor maintained relatively stable market shares.

Although Xiaomi didn't rank in the top five for the full year, its strong Q4 growth demonstrates its continued competitiveness, reflecting its increased investment in its automotive business while also gradually strengthening its investment and innovation in its mobile phone business. The future looks promising.

The rapid development of AI technology presents both opportunities and challenges for the smartphone industry. Manufacturers are actively exploring the integration of AI and smartphones to enhance user experience. Balancing product innovation and AI application will be crucial in shaping future market competition.

Looking ahead, the Chinese smartphone market will remain intensely competitive, with innovation as a key driver. Manufacturers must continuously improve their product capabilities and technological strength to succeed. Evolving consumer demands require manufacturers to adapt and meet growing needs to gain larger market shares. 2025 promises significant changes in the Chinese smartphone market.

In conclusion, the 2024 Chinese smartphone market presented a situation of stable growth alongside innovation challenges. Manufacturers need continued investment in product innovation, channel development, and AI applications to secure their position and achieve greater success in the fiercely competitive market.