Apple lost its top spot among phone manufacturers in China, the world’s largest consumer market. According to a report by Counterpoint Research, the company’s market share dropped to 17.1% in the last quarter of 2024, down from 20.2% in the same period the previous year.

The decline is largely attributed to the growth of Chinese companies Huawei and Xiaomi, which now occupy the top two spots. This is the first time Huawei has reached the top spot since the US imposed sanctions on the company in 2019.

Huawei’s sales grew 15.5% year-over-year, driven by the launch of mid-range phones in its Nova 13 series and high-end Mate 70 series. The company’s strategy to adopt its own Kirin processors instead of relying on Qualcomm’s Snapdragon platforms has also contributed to its success.

Xiaomi’s sales were boosted by its Xiaomi 15 series of advanced smartphones and its progress in the electric vehicle segment, which has increased exposure to the brand and attracted consumers.

According to Counterpoint, the Chinese phone market grew a modest 1.5% in 2024, but the last quarter saw a 3.2% decline. However, the market is expected to grow in 2025, driven in part by the Chinese government’s subsidy program for smartphone purchases, which aims to stimulate the domestic market and starts this month.