Apple Finished 2024 Strong, But Faces Potential AI Challenges Ahead

Apple Ends 2024 Strong, But Faces AI Challenges in China

New research reveals Apple remains the global leader in smartphone market share, but it has faced setbacks in China, a critical market, likely due to the absence of Apple Intelligence.

At the end of 2024, Apple held a 23% market share globally, according to IDC analysts, outperforming Samsung’s 15%. However, in China, Apple’s market share dropped from 19% in 2023 to 15% in 2024, falling to third place behind Huawei (16%) and Vivo (17%), per Canalys research.

Apple Intelligence Troubles

Apple’s inability to launch AI-powered tools in China, due to regulatory hurdles, has contributed to its decline. Competitors like Huawei and Vivo have capitalized on this gap by integrating AI features into their smartphones.

To address this, Apple may need to form partnerships with local AI companies, such as Tencent and ByteDance, to replace ChatGPT and introduce AI capabilities in China. Additionally, Apple’s new data-processing center in Shanghai could support these efforts.

While Samsung isn’t a top-five brand in China, it leads in AI integration, collaborating with Baidu and launching AI-enhanced Bixby. For Apple to regain its position, it must enhance Apple Intelligence globally and establish approved local AI partnerships in China.