Apple’s Market Share Slips as AI-Powered Rivals Gain Ground in Smartphone Industry
Staff Editor Apple’s Smartphone Market Share Dips Amid AI Competition
Apple’s global smartphone market share experienced a decline in 2024, dropping to 18% from 19% the previous year. This slip comes despite the September 2024 release of the iPhone 16, which was anticipated to boost sales with its new AI capabilities.
The tech giant’s AI offering, known as Apple Intelligence, faced a significant hurdle as it remained unavailable in Greater China, a key market for the company. This absence has been cited as a contributing factor to Apple’s declining market share in the region.
Meanwhile, Chinese competitor Xiaomi saw the fastest growth in handset sales in 2024, according to data from Counterpoint Research. Samsung maintained its lead in the global market with a 19% share, supported by the success of its AI-enabled S24 series.
Apple’s overall phone sales decreased by 2% in a year when the global smartphone market grew by 4%. The company is reportedly seeking collaboration with a local tech firm to introduce its AI features in Greater China, aiming to address this market gap.
Samsung’s success has been attributed to its early and effective integration of AI features across its product line. In contrast, Apple Intelligence was introduced later than competitors like Meta and Microsoft, who launched generative AI features earlier in the year.
Currently, Apple’s AI features are limited to iPhone 15 Pro models or later, with additional tools expected to roll out in April. The features released so far have received mixed reviews from users and industry analysts.
Despite these challenges, Apple continues to develop its AI initiatives, laying groundwork for future expansion. The company aims to address the setbacks encountered in 2024 and broaden its AI offerings as it moves into 2025.
As the smartphone industry increasingly pivots towards AI integration, Apple’s ability to adapt and compete in this evolving landscape will be crucial for maintaining its market position in the coming years.
