07:01 AM EST, 01/13/2025 (MT Newswires) -- Apple ( AAPL ) saw a 5% drop in global iPhone sales during the holiday quarter, losing market share to Chinese competitors like Xiaomi and Vivo, reported Bloomberg Monday.

Counterpoint research showed that the iPhone's global market share fell to 18% from 19% in 2024, with full-year sales dropping 2%, while the overall smartphone market grew 4%.

The outlet reported that Apple's ( AAPL ) AI features, introduced with the iPhone 16, remain unavailable in China as the company seeks local partners to enable tools like AI writing and image generation.

Despite weaker sales in China, Counterpoint said Apple's ( AAPL ) Pro and Pro Max models are expected to account for over half of its sales in the country, reflecting strong demand for premium devices.

The researchers added that Chinese brands like Huawei, Honor, and Motorola were the fastest-growing in the top 10, driven by their in-house AI advancements.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)