Following a disappointing AI implementation, Apple iPhone sales fall 5% globally, while Chinese competition increases.

In the last quarter of 2024, Apple's iPhone sales fell by roughly 5% worldwide as a result of poor upgrades and increased competition from China.

Due to poor upgrades and rivals gaining ground in China, Apple Inc.'s worldwide iPhone sales fell by roughly 5% in the last quarter of 2024, according to Bloomberg.

As per the report, which referenced data from Counterpoint Research, Apple's sales decreased by 2% over the year, but the industry experienced a 4% growth.

In 2024, the iPhone's market share fell to 18%, primarily due to the entry of Chinese competitors Vivo and Xiaomi Corp. This even had an impact on Samsung. The brands with the fastest growth were Motorola and Honor.

IDC researcher Francisco Jeronimo was quoted in the paper as saying, "This past quarter was particularly remarkable for the largest Chinese smartphone vendors." "They shipped the largest combined volume ever in a quarter, accounting for 56% of the global smartphone shipments, marking a historic milestone."

All of this results from the fact that Chinese manufacturers are creating their own artificial intelligence (AI) features, while Apple is merely catching up.

This is particularly true in China, Apple's largest market outside of the US and Europe, where Apple Intelligence, the company's suite of AI features, is completely unavailable.

Because of all of this, Apple's stock fell up to 3% to $229.72 on the New York Stock Exchange.

Nonetheless, Apple saw a rise in sales of its more expensive Pro and Pro Max models in China, which now make up over half of its shipments there.