Apple has fallen to third place in the Chinese smartphone market in 2024, losing its position as the leading seller.

Apple lost its position as the top-selling smartphone brand in the vital Chinese market last year, according to new data released on Thursday. Two local competitors surpassed Apple with significant increases in their shipments.

The California-based technology company held a market share of 15 percent in the world's second-largest economy, trailing behind Huawei's 16 percent and Vivo's leading 17 percent, as reported by industry data provider Canalys.

Chinese brands Oppo and Honor also matched Apple's 15 percent market share, with their total smartphone sales just slightly behind Apple's figures.

Apple's struggles in China are attributed to a decline in iPhone sales, which fell to 42.9 million units in 2024, down from a market-leading 51.8 million units the previous year.

"Intense competition has resulted in a continually evolving market landscape," stated Amber Liu, Research Manager at Canalys, who noted that Apple is "experiencing increasing competitive pressure from domestic flagship devices."

Vivo, the top-ranked brand, demonstrated "strong momentum" last year, with Liu highlighting that the company's strategy is effectively "solidifying its position in the entry-level to mid-to-high-end segments."

Meanwhile, Huawei, a Shenzhen-based technology giant that previously faced stringent sanctions from the U.S. over national security issues, has seen a resurgence in its home market in 2024.

The company recorded a 37 percent year-on-year increase in total smartphone shipments last year, according to Canalys data.

While Apple's iPhone remains popular in China, many consumers have shifted to domestic alternatives in recent years as competition in the sector has intensified.

CEO Tim Cook made multiple visits to China last year in an effort to bolster declining sales in the region.

According to Canalys data, Apple's smartphone shipments in the fourth quarter plummeted by 25 percent.

Overall, the mainland Chinese smartphone market grew by five percent year-on-year in the fourth quarter, with total shipments reaching 77.4 million units.

In a further encouraging development for the industry, Beijing announced last week its plan to introduce subsidies for individual purchases of select smartphones. This initiative is part of a discount program aimed at stimulating consumer spending amid economic uncertainty.

According to Lucas Zhong, Research Analyst at Canalys, the new policy "has established a foundation for market growth this year," noting that "vendors have already started preparing their channels and supply."