China's Smartphone Market Q4 2024: Huawei's Resurgence, Apple's Decline

China's Smartphone Market Q4 2024: Huawei's Resurgence, Apple's DeclineChina's smartphone market in the fourth quarter of 2024 presented a complex and noteworthy landscape. According to the latest monthly report from Counterpoint Research, smartphone shipments in China fell by 3

China's Smartphone Market Q4 2024: Huawei's Resurgence, Apple's Decline

China's smartphone market in the fourth quarter of 2024 presented a complex and noteworthy landscape. According to the latest monthly report from Counterpoint Research, smartphone shipments in China fell by 3.2% year-on-year (YoY), marking the only quarter in 2024 to experience a YoY decline. While the full year saw a 1.5% YoY increase, the Q4 downturn warrants careful consideration. The report highlights the intense competition and strategic adjustments of major players.

Huawei's strong comeback was undoubtedly the most striking development. Capturing an 18.1% market share, Huawei surpassed Xiaomi and Apple to reclaim the top spot in China's smartphone market. This marks Huawei's first return to market leadership since the US ban, demonstrating its resilience and brand influence. This significant growth, a remarkable 15.5% YoY increase, is largely attributed to the successful launch of its mid-range Nova 13 series and high-end Mate 70 series. These product lines effectively tapped into market demand, boosting Huawei's competitiveness and establishing a solid foundation in the high-end segment. Huawei's success story offers valuable lessons for other struggling manufacturers, emphasizing the importance of persistent innovation and precise market positioning even in challenging circumstances.

Following closely behind was Xiaomi, holding 17.2% market share and securing second place. Xiaomi's growth stemmed from its strong performance from Q3 to Q4, driven primarily by the hot sales of its Xiaomi 15 series flagship phones launched in October. The success of the Xiaomi 15 series not only solidified Xiaomi's position in the mid-to-high-end market but also showcased its prowess in product development and marketing. Notably, Xiaomi's efforts towards premiumization have also yielded significant progress, and the success of its electric vehicles (EVs) further enhanced its brand image, indirectly boosting smartphone sales. This demonstrates that Xiaomi's diversification strategy is gradually paying off, creating new growth points for its future development.

In contrast to Huawei and Xiaomi's strong growth, Apple faced challenges in Q4 2024. With a 17.1% market share and ranking third, its shipments declined by 18.2% YoY. Facing intensified competition from Huawei and other Chinese brands expanding in the high-end market, Apple's market share experienced some compression. This indicates the increasingly fierce competition in the Chinese smartphone market, requiring Apple to further adjust its China strategy to cope with the mounting pressure.

For the full year 2024, China's smartphone market saw a 1.5% YoY growth, a rebound from the 1.4% YoY decline in 2023. In the full-year market share ranking, vivo led with 17.8%, followed by Huawei at 16.3%, and Xiaomi at 15.7%. This shows that despite the Q4 downturn, the overall market maintained positive growth throughout the year.

Counterpoint predicts that the Chinese smartphone market will continue to grow at a low single-digit rate in 2025. This suggests even fiercer competition in the future, demanding continuous innovation and enhanced product competitiveness for manufacturers to secure a favorable position.

Counterpoint Research's report reveals exceptionally intense competition in China's smartphone market during Q4 2024. Huawei's resurgence, Xiaomi's steady growth, and Apple's decline all foreshadow a more diversified competitive landscape in the future. Manufacturers' strategic adjustments and product innovations will directly impact their future market competitiveness. Huawei's success demonstrates the importance of innovation and precise positioning in adversity; Xiaomi's diversification strategy is showing results; while Apple needs to further refine its strategy in the Chinese market to meet the escalating competitive pressure.

In summary, the Q4 2024 data provides valuable market insights. Huawei's return, Xiaomi's robust growth, and Apple's challenges constitute a fascinating chapter in the quarter's market competition. With continuous technological advancements and evolving consumer demands, China's smartphone market will remain dynamic, with even fiercer competition among manufacturers. This necessitates continuous innovation and enhanced product competitiveness for survival. Consumers will benefit from a wider variety of choices and more competitive pricing.

The data mentioned in this report, especially market share figures, may not add up to 100% due to rounding. Market shares for brands like OPPO (including OnePlus), Xiaomi (including Redmi), and vivo (including iQOO) are affected by this. This report offers crucial insights into understanding the current state and future trends of China's smartphone market.

It is crucial to emphasize that this analysis is based on data from Counterpoint Research and is for informational purposes only; it does not constitute investment advice. Market conditions are constantly changing, and any prediction involves inherent uncertainty.