Apple Inc. ( AAPL ) shares traded lower Thursday following a report that its iPhone sales in China dropped significantly in 2024.

What To Know: Data from research firm Canalys revealed a 17% annual decline in Apple’s shipments in the country, its largest-ever sales drop in the market. The contraction included a 25% plunge in the fourth quarter alone according to Reuters

Apple ( AAPL ) was overtaken by Chinese smartphone makers Vivo and Huawei, which captured 17% and 16% market shares, respectively, compared to Apple’s 15%. The data potentially underscored growing challenges for Apple ( AAPL ), including Huawei’s resurgence with locally-made chipsets and the increasing popularity of domestic brands offering foldable and AI-capable smartphones.

In response to declining sales, Apple ( AAPL ) introduced rare discounts in China earlier this month, cutting prices on iPhone 16 models by up to 500 yuan ($68.50). Major e-commerce platforms like Alibaba’s Tmall marketplace followed suit with additional promotions. Despite these efforts, competition from Chinese manufacturers and a lack of AI integration in Apple’s latest devices may have eroded its market position in one of its key regions.

The broader Chinese smartphone market grew 4% in 2024, with brands like Huawei and Xiaomi posting substantial shipment increases, further highlighting the competitive pressures faced by Apple ( AAPL ) in the region.

AAPL Price Action: Apple ( AAPL ) shares closed Thursday down 4.04% at $228.26, according to Benzinga Pro. The stock saw a further decline in after-hours trading, down 0.026% at $228.20.

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