iPhone is losing ground in China

Apple's market share has declined, while Chinese brands such as Xiaomi, Oppo, Vivo, Honor and Huawei have increased their position in the international market. Photo: CNET .

In a busy shopping mall in northern Hong Kong last week, a Huawei store was packed with shoppers. All eyes were on the Mate XT, the world’s first tri-fold phone that unfolds into a full-size tablet.

Curiosity and excitement prevailed, especially after the famous YouTube star IShowSpeed ​​just bought 3 of these high-end phones in a livestream in Shenzhen. The starting price is around 2,800 USD / unit.

“Oh my god, it’s so big!” the American influencer, who has more than 38 million YouTube subscribers, shouted to the cheers of the Huawei store, surrounded by a crowd jostling to see him experience the Chinese technology firsthand.

Steve Fok, a longtime phone salesman in Hong Kong’s central electronics shopping district, said many consumers are now switching to Chinese-made phones because of their superior features. Even iPhone owners are buying a Chinese phone, mainly because of the longer battery life and more advanced technology, Fok told Rest of World .

Lagging behind in technological innovation

According to statistics, the US corporation lost its leading position in the smartphone market in China last year to two domestic brands, Vivo and Huawei. The number of iPhones shipped in this country during the year decreased by 17%. This is the sharpest decline since 2016.

Globally, Apple retained its lead, but its shipments in 2024 declined compared to the previous year. Meanwhile, Chinese brands such as Xiaomi, Oppo, Vivo, Honor and Huawei increased their position in the international arena.

Speaking to Rest of World , Francisco Jeronimo, vice president of data and analytics at IDC, said that owning an iPhone today doesn't mean as much as it did five to 10 years ago.

“Apple is falling behind its Chinese rivals in terms of technological innovation. Consumers are turning to more unique devices, such as Huawei’s foldable phones,” he said.

Apple is lagging behind Chinese rivals in innovative features. Consumers are turning to more differentiated devices like Huawei’s foldable phone. Photo: Bloomberg.

One of Apple’s weaknesses in the current race is its ability to implement AI features. Although the iPhone 16 has integrated some AI technology, Apple still announced that it will delay upgrading Siri until 2026. In addition, iPhone 16 models sold in the billion-people market do not support Apple Intelligence features because they have not been approved by Chinese regulators.

Meanwhile, domestic brands have been quick to seize the opportunity. Huawei has integrated its Xiaoyi virtual assistant, which uses AI technology from DeepSeek, into its latest models since last year. They combine it with the company's own AI model to create a smarter user experience. Companies like Oppo and Honor have also been quick to launch their own AI features. Consumers can easily feel the difference when placed next to the iPhone.

“I think the integration of AI in phones is having a huge impact. So in a store, when customers are presented with all these modern features and realize that the iPhone doesn’t have them, they are more likely to be convinced to switch to a Chinese brand,” Jeronimo asserted.

Americans are also starting to hesitate when buying iPhones.

Apple is not only being pushed back in China, but also facing challenges at home. President Donald Trump’s proposed tariffs of up to 145% on Chinese goods could make American consumers think twice about buying an iPhone.

Most iPhones sold in the US are now made in China. So according to some estimates, the cheapest price for an iPhone 16 in the US could rise to $ 1,142 . The high-end version iPhone 16 Pro Max could even hit $ 2,300 , according to Reuters.

Higher prices could push American consumers to turn to competitors like Samsung, the world’s second-largest smartphone maker from South Korea, which doesn’t face the same high tariffs as China.

Some Chinese consumers say patriotism is the reason they switch to domestic phones. Photo: New York Times.

In China, nationalism also plays a big role in the switch. Ming Leung, who used to use the iPhone X, decided to switch to the Huawei Pura 70 Pro last October. “As a Chinese, I support Huawei because it is a Chinese brand,” he told Rest of World .

At the Huawei store, a 40-year-old man named King Mak happily showed his wife how to fold the Mate XT. “My boss has one too. But he doesn’t actually use it. He only brings it on business trips to the mainland, to show his patriotism,” Mak said.

Source: https://znews.vn/iphone-ngay-cang-mat-cho-dung-tai-trung-quoc-post1544994.html