Apple has lost its position as China's leading smartphone seller in 2024, with Vivo and Huawei overtaking the iPhone maker, according to data from research firm Canalys, states a recent Reuters report.

Apple's annual shipments in China declined by 17%, marking its largest-ever annual sales drop in the country. The decline was consistent across all four quarters, with a significant 25% drop in the final quarter.

For the full year, Vivo captured a 17% market share, followed by Huawei with 16%, and Apple with 15%. This shift highlights the increasing sales pressure Apple faces from domestic manufacturers in one of its most significant global markets, states Reuters.

The decline in Apple's sales can be attributed to several factors, including the absence of artificial intelligence (AI) capabilities in the latest iPhones sold in China. ChatGPT, a popular AI platform, is not available in the country, which may be impacting the iPhone's competitiveness. 

As per the Reuters report, Canalys analyst Toby Zhu noted, "This marks Apple's worst annual performance in China. Apple's premium market position faces multiple challenges: Huawei's continuous flagship releases, the proliferation of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovations."

In response to the declining sales, Apple has turned to rare discounts to stimulate demand. The company launched a four-day promotion in China from January 4 to 7, offering price cuts of up to 500 yuan ($68.50) on its iPhone 16 models through official channels. Major Chinese e-commerce platforms, including Alibaba's Tmall marketplace, have also joined the efforts, announcing discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices, further states the Reuters report.