Apple’s iPhone Market Share Drops to 18% Amid Heightened Competition

Apple’s iPhone Market Share Drops to 18% Amid Heightened Competition

Apple Inc. (AAPL) has seen its global iPhone market share dip to 18% in 2024, according to Counterpoint Research. This decline comes as Chinese smartphone makers, including Xiaomi and Vivo, continue to intensify competition, offering innovative and cost-effective alternatives.

While the broader smartphone market experienced a 4% year-over-year growth, iPhone sales dropped by 2%, highlighting Apple’s struggles to keep pace. The September 2024 launch of the iPhone 16 series failed to meet consumer expectations, as its features fell short when compared to rival offerings.

In China, a key growth market, Apple's flagship AI-powered features were absent from its devices, creating an opening for competitors. Companies like Xiaomi and Vivo have capitalized on this gap, successfully integrating AI-driven enhancements to cater to tech-savvy consumers.

Apple now faces increasing pressure from mid-range and entry-level smartphone brands that dominate emerging markets. To regain its footing in 2025, Apple will need to realign its market strategy, prioritize innovation, and adapt its product lineup to address consumer needs more effectively.