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Apple iPhone sales dip 5 per cent globally amid AI challenges: Details

To regain momentum, Apple must accelerate the global availability of its AI features and strengthen its competitive position in key markets like China. As competitors continue innovating with AI-driven features, the tech giant faces growing pressure to deliver better features.

Apple iPhone sales dip 5 per cent globally amid AI challenges
Apple iPhone sales dip 5 per cent globally amid AI challenges Image Source : Apple
Written By: Saumya Nigam @snigam04
New DelhiPublished: , Updated:

Apple Inc., one of the leading names in the handset market has witnessed a 5 per cent drop in global iPhone sales during the holiday quarter of 2024. With this, the company has lost market share to Chinese rivals. The decline reflects challenges in meeting expectations around Apple Intelligence, its AI suite, particularly in China, its largest market outside the US.

iPhone’s market share shrinks as Chinese brands surge

In a recent report by Counterpoint Research, one of the leading global technology market research firms, Apple’s global smartphone market share has slipped down to 18 per cent in the final quarter of 2024, marking a 2 per cent decline in annual sales.

While Samsung also ceded ground, Chinese brands like Xiaomi and Vivo capitalized on the demand for Android devices, driving global market growth by 4 per cent.

AI delays hurt Apple’s performance in China

Apple’s rollout of Apple Intelligence, an AI feature like writing assistance and image generation, has lagged behind expectations. These features, introduced with the iPhone 16 series in September, remain unavailable in China due to challenges in securing local partnerships.

Analysts suggest that inflated expectations for AI capabilities at launch contributed to the mixed response to the iPhone 16 series.

Despite fewer unit sales in China, Apple’s Pro and Pro Max models accounted for over half of the region’s sales, showcasing demand for premium devices.

Growing markets offer bright spots for Apple

While struggling in China, Apple found success in emerging markets like Latin America, where it posted strong growth. The company’s focus on expanding in non-core regions offers a counterbalance to its challenges in mature markets.

Chinese smartphone makers lead AI innovation

Brands like Huawei, Honor, and Motorola emerged as the fastest-growing players in the top 10, thanks to their focus on AI. These companies are developing in-house AI tools capable of performing advanced tasks, offering a competitive edge over Apple’s delayed AI rollout.

Investor concerns reflect in stock performance

Apple’s shares fell 2.8 per cent to USD 230.20 during Monday’s trading, reflecting broader market trends and investor concerns over its AI strategy.

 

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