Apple lost leadership in China due to consumer patriotism

The publication clarifies that the Apple Intelligence service is not available in mainland China, since, according to internal regulations, all companies wishing to launch generative AI services in the Chinese market must be tested for compliance with “socialist values” of the State.

Due to the “forced” lag behind Chinese competitors, Apple’s total revenue from the sale of equipment in mainland China fell by almost 8% compared to September last year, writes FT.

Additionally, iPhone sales in China fell to 42.9 million in 2024, down 17% from the previous year, according to research firm Canalys. This reduced Apple’s smartphone market share by 4 percentage points, to 15%. For their part, Vivo and Huawei sales grew by 11% and 37% with market shares of 17% and 16%, respectively.

The Financial Times notes that Apple CEO Tim Cook visited China three times last year to negotiate the rollout of the iPhone 16 with its artificial intelligence functionality, but without success.

IDC research analyst Will Wong told the publication that Apple’s failure to sell iPhones in 2024 was also influenced by changes in consumer sentiment in the country as Chinese people began saving more. Wong said Apple’s success in 2025 will depend on whether the company can overcome China’s regulatory framework to launch an iPhone with artificial intelligence and draw customers away from its Chinese rivals.

Previously, on December 25, Kommersant, citing data from NMi Group, VK and M.Video-Eldorado, reported that the image of the iPhone in Russian advertising on television, billboards and the Internet over the past three years had begun to be inferior in popularity for Samsung and other Android devices. Among the reasons are the drop in Apple sales and the blocking of functions of its smartphones in the country.