According to The Hindu, the Year-on-year growth of made in India smartphones grew by 6%, majorly because of these two brands. The research firm, Counterpoint, said, “Both the brands have significantly expanded their manufacturing in India to align with the country’s objective of reducing reliance on imports and strengthening its presence in the global supply chains.”

India Smartphone Manufacturing Growth Accelerates

Industry reports point out that India smartphone manufacturing growth is being fueled by increasing global demand, pro-business government policies, and rising investments from top smartphone brands. Apple and Samsung have both increased their production in India substantially, taking advantage of the cost advantages of the country and favorable export environment.

Samsung stayed on top as the top smartphone manufacturer in India in 2024, growing 7% compared to last year due to a 13% rise in its exports. Vivo came in second with a 14% growth and took a 14% share of total shipments.

Foxconn Hon Hai saw a 19% increase in production, mainly because of strong demand for Apple’s iPhone 14, iPhone 15, and iPhone 13 models. Oppo dropped to fourth place as its shipments fell by 34%.

DBG grew well too, helped by making phones for Xiaomi and Realme. Tata Electronics was the fastest-growing manufacturer, with a huge 107% jump in production, mostly due to large volumes of iPhone 15 and iPhone 16 models.

Apple and Samsung Exports from India Set New Benchmarks

The dominance of Apple and Samsung exports from India reflects global brands growing in India’s manufacturing capabilities. Apple’s iPhone exports have seen an increase in double digits alone, contributing significantly to the overall smartphone exports of the country. Meanwhile, Samsung remains a strong player, with a wide range of catering in various price segments.

Industry experts believe that the frequent performance of these two brands will strengthen India’s position as a global manufacturing center, especially geo -political stress companies to diversify production away from China.

India’s Smartphone Export Growth

The significant growth in made in India smartphone exports is a testament for the success of government initiatives such as India PLI scheme and strategic investment made by top smartphone exporters in India such as Apple and Samsung.

With India smartphone manufacturing growth showing no signs of slowing, the country is well-positioned to expand its share in the global smartphone market. As production scales and new players enter the scene, India’s ambition grows rapidly within the global manufacturing powerhouse.

The post Samsung Leads as India’s Smartphone Manufacturing Grows in 2024 appeared first on Tech Research Online.

Nitin Saluja, co-founder and CEO of Tiger Global-backed Chaayos said, “This is a part of the playbook that brands have globally followed to sell branded products, bottled coffee, and other products. There is an underlying customer demand…and for us, we’ve been selling these products for 10 years now and quick commerce is a channel that is growing very fast, and so are our sales on that channel.”

The ease of instant delivery, along with personalized menus, is enabling quick-service restaurants (QSRs) to access new consumer segments. These chains are reimagining their menus—crafting combo meals, limited-time offers, and bite-sized portions specifically for quick commerce platforms.

Quick Commerce Companies in India Reshaping Food Delivery

The rise of quick commerce companies in India has changed the dynamics of the food distribution ecosystem. Platforms such as Blinkit and Zepto, traditionally known for distributing grocery items and daily necessities, are now aggressively expanding to the food category. Their growing partnership with popular QSR chains shows the increasing importance of quick deliveries in the food sector.

From burgers and fries to desserts and beverages, top QSR brands are taking advantage of these platforms so that they can serve their most popular items quickly. This strategic alignment is running both high -order volume and increased brand visibility, making it a winning position for QSRs and quick commerce players.

Quick Commerce Food Industry Insights

As per Quick commerce food industry insights, instant food delivery demand is growing, particularly in metro cities where convenience is at the top of the consumer agenda. Consumers now expect meals to be delivered within 10-15 minutes, compelling QSR brands to streamline their operations for this emerging delivery model.

The increased trend of late-night hunger pangs, spontaneous snacking, and last-minute party orders is propelling the demand for QSRs to keep pace with quick commerce platforms. Tailored packaging, pre-cooked food items, and special kitchen setup arrangements for speedy deliveries are becoming the standard in the sector.

A recent report by Bernstein highlighted Quick Commerce as the fastest growing and emerging platform for consumer staple brands in various channels. Currently, e-commerce leads 6–10% of the total sales for major FMCG companies, accelerated commerce contributes 30–50% of its online sales. Bernstein has predicted that India’s quick commerce companies will grow from $10 billion to $75 billion by 2032.

Sagar Daryani, founder and group CEO, Wow Momo said, “We sell frozen momos in quick commerce and modern trade channels…and are seeing Rs 5 crore a month in sales. Of this, quick commerce is 52%. It’s growing very fast, and we expect to go from annual sales of Rs 36-38 crore this year to Rs 75 crore by next year.”

QSR Brands on Blinkit and Zepto Gaining Traction

Today, the QSR brands on Blinkit and Zapto are watching significant traction because consumers rapidly choose these platforms for their favorite food. Whether it is a quick coffee, a box of fries, or a full meal, these platforms are bridging the rapid difference between the restaurants and the customers.

As the quick commerce and QSR wave continues, it is clear that speed, adaptation and convenience will shape the future of the food distribution industry in India. In India, there is an aggressive expansion with quick commerce companies, the instant food distribution is to live here – consumer expectations and QSR strategies alike.

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According to Yahoo Finance, the investigation started during Biden’s administration but has now been take over by the new FTC chair Andre Ferguson under Trump. Alex Haurek, a Microsoft spokesman, “We are working cooperatively with the agency.”

FTC Expands Its Microsoft Antitrust Probe

The FTC is investigating Microsoft to see if the company is indulged in practices to impede market competition. The company has been heavily investing in AI growth such as Microsoft’s AI investment in India worth $3 Billion. The regulatory agency shows special interest in examining how Microsoft approaches bundling software with other products while assessing its growing cloud computing business.

The FTC Investigation of Microsoft continues to increase its speed due to leadership changes implemented by former President Donald Trump. Market competitors have raised claims with the agency about Microsoft’s strategic use of its market power which specifically affects competition in software licensing terms along with cloud computing and gaming markets.

Microsoft Software Licensing Practices Under Scrutiny

The Microsoft antitrust probe concentrates on the company’s software licensing standards. Businesses argue that Microsoft enforces strict licensing requirements that limit their ability to use third-party services. They claim these restrictions are particularly problematic when Microsoft offers similar competing solutions. Antitrust laws may be breached because these practices work against fair competition throughout both software and cloud industry sectors. In December 2024, Microsoft integrated third party AI models in 365 Copilot for diversifying its AI strategy.

The European regulatory authorities have issued complaints against Microsoft because of comparable issues. Microsoft faces investigation with the FTC to determine whether certain business practices restrict competition unfairly throughout the American market.

Potential Outcomes of the Microsoft Antitrust Probe

The Microsoft antitrust investigation potentially holds several major impacts for Microsoft as a business entity. The company could receive many regulatory penalties if proven guilty of anti-competitive activities. Microsoft could also need to adjust its software licensing practices to create equal competition conditions while expanding access for external service suppliers.

The investigation would require Microsoft to undergo additional regulatory oversight that will ensure their upcoming acquisitions and business approaches abide by antitrust regulations. The company risks legal challenges including lawsuits from both authorities and competitors when regulators detect significant monopolistic practices. The FTC Investigation of Microsoft will modify how the company operates while affecting the entire tech sector.

The Future of Microsoft’s Business Operations

As the FTC investigation of Microsoft moves forward, the company faces increased regulatory scrutiny. With Microsoft’s vast influence in software, gaming, and cloud computing, the results of the investigation could have lasting implications for on the tech industry. If the FTC imposes stricter regulations, it may change how Microsoft operates and competes in the global market.

For now, industry analysts and competitors are closely watching the FTC Investigation into Microsoft, as the outcome could reshape the future of technology regulations in the U.S.

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Demand for Low-Priced Models

Xpeng’s monthly deliveries included 15,000 units of lower-priced Mona vehicle models. The Mona M03 model, which comes with a basic driver assist software system, hit the 15,000 unit sales mark per month in December.

According to EV manufacturers, surging demand for driver-assist systems pushed demand for its P7+ electric sedan to over 30,000 units in just 3 months. The company introduced the sedan to the Chinese EV market in November 2024.

Analysts say that Xpeng’s expansion plans to introduce new vehicles to the market have given the EV firm “a good chance to extend its solid delivery momentum.”

China’s automobile market remains competitive as conventional manufacturers and new entrants rush to unveil cars with new tech features and reduce prices. Traditionally, the January-February months tend to be slow for Chinese vehicle sales. This is because the months coincide with its longest annual holiday, the Lunar New Year.

Gradual Growth

China’s EV industry has been experiencing gradual growth with companies reported growth in units sold this month. Smartphone maker Xiaomi shipped over 20,000 EVs for the fifth month last month. Last week, the company reduced the starting price for its EV sedan SU7 Ultra from $111,878 to $72,750.

Following the price drop, analysts say the order situation for the SU7 is much lower compared to actual sales. This means that the only challenge Xiaomi has is its ability to to manufacture more vehicles.

Leading EV giant BYD reported that it sold 318,233 new EV vehicles in February. This number is slightly higher than its January sales. The company announced that it was introducing a driver-assistance system in a range of EVs. The company also plans to integrate AI from DeepSeek. Zeekr, a company owned by Geely sold 14,039 EV units in February compared to 11,942 units it shipped in January 2024.

EV Sales Struggles

Although some Chinese EV brands recorded an increase in sales revenue last month, there are brands whose sales have dipped over time. One of these is Li Auto. EV sales for this company dropped from 29,927 in January to 26,263 units in February. Last month, this company unveiled an exterior design for its initial full battery-electric SUV. Li Auto’s premium-priced EVs have become popular among Chinese buyers because they are fitted with a fuel tank that extends their battery driving range.

The other company that recorded a drop in February sales is Aito. The company, which is owned by the Seres brand that uses Huawei technology, reported the lowest EV sales in February at 21,517 units. Nio also experienced a drop in February. Sales for this EV manufacturer dropped from 13,863 in January to 13,192 units in February. Nio unveiled a 5-year zero interest plan at the beginning of February 1 to boost sales.

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According to CNBC, Sony expects its earnings for the full financial year 2024-25 to be $85.8 billion, up by 4% from the November forecasts. Sony’s operating profit is also predicted to be up by 2% to $8.71 million for the annual year. In November 2024, Sony’s quarterly profit jumped by 69% and reached $2.21 billion which was above market expectations as reported by the Japanese tech giant.

PlayStation 5 Performance in Q3

The PlayStation 5 sales surged during its recent earnings report producing a substantial impact on Sony’s Q3 profits. The Japanese company sold over a million PlayStation 5 consoles during the holiday period because it established better production stability following the earlier supply limitations through chip shortages.

The previous shortages of semiconductors led Sony to face problems in supplying enough PlayStation 5 consoles for consumer demand. The improvement in supply helped Sony produce more units so customers could buy PlayStation 5 consoles during holiday shopping periods. This boost in Sony Holiday Sales helped the company surpass its initial sales targets.

The game and network services division of Sony generated $1.5 billion in revenue during the third financial quarter showing a 16% rise compared to the previous year. Gaming console and third-party game titles with additional content generated increased sales to support the division’s growth.

PlayStation 5-unit sales for Sony reached 9.5 million during the December quarter compared to the 8.2 million units sold the previous year. As a result, Sony upgraded its original sales projection for the 2025 fiscal year by raising its projected revenue from $81.9 billion to $82.55 billion in the previous financial period.

Sony’s Gaming Success

The gaming segment at Sony has consistently relied on holiday success yet maintained its strength this year especially. Sony Holiday Sales generated better results than anticipated because PlayStation 5 attracted large numbers of consumers. By running promotions and releasing exclusive games and setting competitive prices Sony optimized their sales performance during peak periods.

The gaming market received a boost when retailers documented successful sales of PlayStation 5 bundle packages alongside digital game revenue growth for Sony. The company achieved increased subscriptions through its PlayStation Plus service which enhanced its recurring revenue performance.

Sony’s Future Strategy

The amazing sales of PlayStation 5 have led Sony to maintain positivity towards its gaming business segment. The Japanese technology giant plans future investments in exclusive content as well as cloud gaming and hardware developments to stay ahead in the market.

Sony’s new estimates are in sync with the ongoing demand for PlayStation 5 hardware and its related products and solutions. The gaming industry expansion has motivated Sony to develop long-term success by delivering exceptional gaming experiences and creating robust platforms for its player population.

The post Sony Raises 2025 Revenue Forecast to 12.7 trillion Yen with Strong PlayStation 5 Sales appeared first on Tech Research Online.

Apple stocks gained over 3% on January 31 as the company hinted at a recovery from iPhone sales drop as the company rolled out AI features.

“With investors highly tuned into how AI spend will represent real revenue for big tech, Apple’s results have provided reassurance,” Hargreaves Lansdown Head of Money and Markets Susannah Streeter said.

The China Effect

Apple sales results showed that the company’s revenue grew despite missed iPhone sales estimates. China Apple sales declined by 11.1%, reducing the company’s revenue to $18.51 billion. This was the largest sales drop that Apple has recorded in a major region since quarter one of 2024 when sales dipped by 13%.

The Chinese market is increasingly proving difficult for the iPhone maker. The big tech is facing intense competition it continues to face from local smartphone manufacturers like Huawei, Vivo, and Oppo. Apple CEO Tim Cook has blamed the sales drop on delays in making Apple Intelligence available in the Chinese market and several other major markets. Apple AI is the biggest selling for Apple’s latest iPhone 16 series that the company launched towards the end of 2024.

“During the December quarter, we saw that in markets where we had rolled out Apple intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence,” Cook said.

Inventory Challenges

Besides fierce competition, Cook attributed the drop in China iPhone sales to inventory issues.

“Our channel inventory reduced from the beginning of the quarter to the end of the quarter. “Our sales were a bit higher than we forecasted them to be toward the end of the quarter. And so we ended up a little leaner than we had expected to,” he said during the earnings call.

Security restrictions and regulatory approval are the other challenges that have kept Apple from rolling out Apple AI in China. The tech company has reportedly partnered with internet firm Baidu to include AI features to iPhones in the Asian country.

Apple’s quarter-one projections fall within analyst predictions of about 5%. The positive projections were sufficient to excite investors after a quarterly report that spurred mixed emotions. The rise in the company’s stocks was a relief for investors after the 5.1% drop experienced until January 30 following the widespread tech share decline.

Minimal Gains

The drop in iPhone sales in quarter four suggests that Apple did not reap much from unveiling Apple Intelligence. Cook argued that the company recorded better iPhone 16 sales in countries where users have access to AI features. The company entered the AI race later compared to rivals and has been playing catch-up with some of its biggest peers.

The iPhone maker opted for a staggered AI rollout, a move that analysts have argued made customers wait for many features. As Apple adopted this approach, its competitors dived in and expanded to other areas, including smart glasses.

“Apple needs to accelerate its Apple Intelligence deployment and be a bit more aggressive in emerging areas like smart glasses development to maintain an innovative edge. The next few quarters will test whether it can balance its cautious approach with the market’s hunger for AI innovation,” Jacob Bourne, an Analyst at Emarketer said.

Apple also reported a decline in its wearable business in the holiday quarter as well. Overall, Apple’s revenue increased by 4% to reach the $124.3 billion mark in the quarter under review against a $124.1 billion analyst projection. The company reported a $2.40 profit rise per share against the $2.35 projected by analysts.

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As per CNBC, Samsung reported a better than expected profit in the previous quarter even though the operating profits remained lower. The revenue surged by 12% from last year and the operating profit went up by 130% year on year. Samsung’s operating profit dropped by 30% and the revenue slipped by 4% quarter on quarter.

Samsung said in a statement, “Although fourth quarter revenue and operating profit decreased on a quarter-on-quarter (QoQ) basis, annual revenue reached the second-highest on record, surpassed only in 2022.”

Samsung’s profit dropped because semiconductor demand decreased significantly in the consumer electronics and data centers sector. AI-driven market demand has helped reduce the impact of declining profits but overall earnings still suffer from a general profit dip.

Flags Chip Slowdown

A slowdown in flags chip performance reported by Samsung occurred during a challenging period for the semiconductor sector when global market demand weakened. The memory chip sector experienced a brief recovery in 2024 before witnessing new price declines because of surging supplies and technology industry buying reductions.

Competitors such as SK Hynix and Micron demonstrate the same market challenges which indicate cyclicality in the chip industry. The company projects AI technologies and high-performance computing will become driving forces behind Samsung’s eventual market recovery despite the current downturn. Due to the U.S. tariffs concerns, Samsung Electronics shares hit the lowest in the last quarter of 2024.

Samsung shares fell 2.2% in South Korea on Friday morning while SK Hynix tumbled more than 11% after markets in South Korea opened after a four-day break. Asian tech titans are feeling the tension following China’s DeepSeek AI model overtaking ChatGPT.

Samsung added in its statement, “For 2025 as a whole, the Company plans to enhance technological and product advantages in AI, continue to meet future demand for high-value-added products and drive sales growth in premium segments.”

Samsung’s Previous Quarter Profit Declines

Samsung exhibits reduced profitability compared to its previous quarter alongside diminished marketplace need and reduced prices. Both DRAM and NAND flash memory sales performed well previously for Samsung before customers started reducing their purchase volume.

Samsung dedicates substantial financial resources to developing next-generation chip innovations such as AI-driven semiconductors along with advanced manufacturing methods even though the market faces diminishing growth. The company stays focused on protecting its market leadership despite present industrial hurdles.

Samsung Electronics Faces Uncertain Recovery

Samsung Electronics will continue to concentrate on market evolution and innovation development through the next five years. The company holds onto its AI investment and high-performance computing growth plans to accelerate its future expansion even though current market turbulence exists. In a recent development, Samsung unveiled new AI smartphones with Qualcomm chips to mark its presence in the market, entering 2025.

With Samsung flagging chip concerns affecting investor sentiment, the company’s ability to manage supply chain dynamics and pricing strategies will be critical in determining its financial trajectory. Industry watchers will be keeping a close eye on how Samsung navigates these challenges in the months ahead.

The post Samsung Profit Drops Amid Chip Market Slowdown and Weak Demand appeared first on Tech Research Online.

According to Reuters, Apple as well as its rivals Samsung and Google are dependent on AI for the sales of their smartphones. Though Apple’s latest iPhone 16 lacked AI features on its launch in September 2024 and will only be available later this year in many regions.

Jane Hepburne Scott, investment manager at Aegon Asset Management said, “AI is the new technology innovation, the fact that Apple’s handsets are lagging behind on capabilities is a key reason why their competitive positioning has weakened, and the company has lost market share.”

Challenges in the Holiday Quarter

The holiday season quarter usually delivers amazing results for Apple because customers purchase new iPhones along with other products. This year’s financial performance might show negative effects coming from three primary factors: supply chain problems alongside delayed artificial intelligence progress and high competition through Google’s Samsung AI devices.

Projections indicate that iPhone shipment numbers reached lower numbers than Apple’s previous annual totals despite the company’s intense advertising efforts paired with its high-end product classification. Google Samsung AI devices are ruling the market in implementing flagship AI characteristics that become active earlier than Apple’s AI integration.

According to IDC data, Apple’s global smartphone market share has come down to 23% in the last quarter of 2024 from 25% earlier. This is a result of Apple sales declining in China due to fierce rivalry from domestic manufacturers.

Apple AI Integration

One of the key concerns for Apple investors is the delay in Apple AI integration within its latest devices. Technological advancements featuring artificial intelligence by Google and Samsung have appeared in their flagship smartphones but Apple’s cautious approach to AI integration has raised doubts about its focus on AI development.

The global smartphone market depends increasingly on AI features according to industry experts who point to features such as real-time translation together with upgraded photography characteristics and automation through artificial intelligence. As a result of Apple delaying its technological advancements, the recent iPhone model release received diminished consumer enthusiasm which damaged total revenue.

Chinese Competition Intensifies

The Chinese market where Apple operates has presented major challenges to the company. Chinese smartphone brands Huawei, Oppo, and Vivo succeeded by producing high-end phones at prices that competition found difficult to challenge. The resurgence of Huawei threatens Apple directly because the company released new devices integrating fifth-generation wireless technology as well as a new Harmony OS in Mate 70, the company’s latest smartphone.

Market analysts report that Chinese consumers are switching to local brands instead of Apple products because they prefer domestically produced technologies. Data showed that Apple’s share dropped to 10% from 17% in China. However, the analyst says that Apple’s revenue growth strategy will help in bringing up the company’s sales by 1.9% in the first quarter of 2025.

The post Apple Holiday Quarter Sale Slows Amid AI Delays and Chinese Competition appeared first on Tech Research Online.

The rising competitive environment with BYD and reducing demand is driving Tesla to launch an affordable electric vehicle that will attract new customers and restore its market presence.

Although a leading force in the EV market, Tesla has had a difficult 2024 with slowing demand, price cuts, and rising competition. The global deliveries of the company have been lower than anticipated, which is making Tesla investors worried about its growth. Demand for Tesla has dipped amid the slowing EV demand and the company is set to increase its deliveries by 30% in 2025..

The automotive company is working on producing a cheap EV model suitable for the broad consumer base. An affordable EV from Tesla under development promises lower pricing than existing models which seeks to reduce EV costs and thus drive adoption across society. The launch of Tesla’s revamped Model Y has also hit the U.S. market to boost Tesla’s sales.

BYD vs Tesla

Tesla is being competitively threatened by BYD, a Chinese automobile manufacturer that has aggressively expanded its presence in the global EV market. The BYD vs Tesla rivalry has intensified as the Chinese car company continues to offer electric cars at a relatively lower cost than Tesla. In November 2024, BYD’s record-breaking sales helped the company achieve its 2024 goals.

BYD recently overtook Tesla in global EV sales, highlighting its need to work on its pricing and product strategy. According to industry experts, an affordable Tesla model is important in defending its position against BYD and other emerging competitors.

While a Tesla cheap EV model is expected to increase sales, some analysts question its impact on Tesla’s profitability. Tesla has always maintained high-profit margins by selling premium vehicles, and launching a lower-priced model could strain its production costs.

Barclays analyst Dan Levy said in a research note, ” As the opportunity for growth from Tesla’s existing lineup appears quite limited, Tesla’s new low-cost model remains crucial to Tesla’s plan for growth, even if not to the extent of the prior 20-30% y/y target.”

Cheaper Tesla To Revive Sales

The strategy that Tesla is to adopt with an economical EV may be a turning point in its growth curve. If successful, it will not only help boost Tesla sales but also make it a leader in the EV sector. However, the EV manufacturer will be facing challenges related to production cost, supply chain management, and profitability.

With Tesla investors impatiently awaiting new model updates, all eyes will be on Elon Musk and Tesla’s leadership to see how they carry this critical shift. David Wagner, portfolio manager at Tesla investor Aptus Capital Advisors, “It is unclear whether the new model will qualify for a $7,500 U.S. rebate, which could make the net cost to consumers higher, and we don’t know how different the new offering might be, and whether it might cannibalize existing Model Y sales.“

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As demand slows down, competition intensifies, and new challenges arise, smaller and less efficient refiners may face extinction. As per Yahoo Finance, around 10% of the Chinese oil refining factories may close in the next 10 years. This is happening because the Chinese Refining Sector will face the surge in demand sooner than expected while the government pushes to cut costs.

With the increasing curbs and sanctions on Chinese manufacturers, a lot of small factories for oil refining will lose their access to cheap crude oil from countries like Iran, according to analysts and industry players.

“The growth era for China’s refining industry is coming to an end,” said an industry analyst. “Refiners will have to adapt to a changing market where efficiency and sustainability play a bigger role.”

Impact on Global Crude Oil Imports

The China refining sector has been a major driver of global crude oil imports, absorbing vast quantities of oil to meet domestic and export demands. However, as fuel consumption stabilizes and refiners optimize production, China’s appetite for crude may wane.

A decline in global crude oil imports from China could have far-reaching consequences. Major oil-producing nations, including Saudi Arabia and Russia, may need to adjust their export strategies. Additionally, refiners in other parts of Asia, such as India and South Korea, could see shifts in market dynamics as China refocuses on efficiency rather than expansion.

China Refining Sector Faces Consolidation

As the shakeout in China’s refining sector intensifies, smaller and older refineries face the risk of being shut down. Large state-owned refiners like Sinopec and PetroChina are likely to continue their lead, while independent refiners, also known as “teapots,” are likely to be at a disadvantage. With China becoming one of the major consumers of Electric Cars, petroleum refineries are facing a major setback

The government has cracked down on small refineries lately, denying the smaller refineries crude import quotas and tightening up the environmental standards. This already led to a few plant shutdowns and has forced others to upgrade their operations. This is expected to be a trend because the industry needs to consolidate its efforts in relation to the new energy landscape.

Fuel Export Dynamics to Shift

China played a critical role in the dynamics of exported fuels, as it supplied refined products like gasoline and diesel to markets all over Asia. However, changes in domestic consumption and stricter export policies will change China’s influence over global fuel supply.

China would probably focus on the production of higher-value petrochemical products instead of trying to be another refining hub of the world, said industry observers. “The future of China’s refining sector may lie in chemicals and alternative energy sources rather than just fuel production,” said one energy strategist.

The China refining sector shakeout signals a critical transformation in the country’s energy market. With the fuel demand peak nearing and global crude oil imports readjusting, refiners have to adjust to a new reality. With changing fuel export dynamics, China’s refining industry is at a critical juncture, one that may redefine its role in the global energy landscape.

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A Steady Sales Decline

Data from Canalys shows that the 17% iPhone sales decline was the largest that Apple has recorded in any year. Apple’s iPhone sales in China dropped steadily throughout 2024. However, the company experienced a sharp 25% drop in sales in quarter 4.

“This marks Apple’s worst annual performance in China. Apple’s premium market position faces multiple challenges- Huawei’s continuous flagship releases, the proliferation of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovations,” Canalys Analyst Toby Zhu said.

Apple’s smartphone sales in China were affected heavily by fierce competition from local companies. For instance, budget smartphone manufacturer Vivo controlled 17% of China’s smartphone market share throughout the year. Premium smartphone maker Huawei controlled 16% of the market share while Apple came third with a 15% share.

This data shows the mounting pressure that Apple continues to face in one of its leading global markets. Last year, Huawei aggressively launched a range of high-end smartphones in the Chinese market. Its new products are increasingly becoming popular among Chinese buyers.

Apple AI Challenge

The decline of Apple’s market position in China shows how the absence of AI capabilities in its latest iPhone 16 may have affected the company’s competitiveness. The big tech unveiled iPhone 16 in September 2024 with a promise that the new model would offer a range of AI features through Apple Intelligence.

Although iPhone 16 is on sale in China, Apple AI is still not accessible to Chinese users due to the complicated AI regulations in the country. Rival smartphone makers have been marketing their own AI features in the country. Apple is reportedly talking to Tencent and TikTok’s mother company Bytedance about integrating AI models in iPhones sold in China.

Apple’s Rise in China

For four years, Apple enjoyed consistent growth in China after the US government sanctioned Huawei products in 2021. These sanctions restricted Huawei from accessing the American market and technology. In 2023, Huawei made a comeback with premium smartphones. Since then, the Chinese smartphone maker has launched several chipsets in the domestic market, posting a 24% increase in sales in quarter four of 2024.

Huawei announced discounts on several high-end smartphones, watches, headphones, and tablets in December last year. The price slash was aimed at boosting sales and expanding the smartphone’s market share amidst fierce competition. Huawei has maintained its position as the best seller of foldable phones in the Chinese market.

Data from Counterpoint shows that the tech giant accounts for about 50% of the total domestic foldable smartphone shipments. Huawei shipped about 1.12 million foldable handsets in quarter 3 of 2024, representing a 97% year-on-year increase. Mate X5 contributed the biggest share of these shipments. Apple reacted to this move by launching a rare 4-day promotion with price cuts of up to $68.50 dollars on its top models to boost sales.

Apple’s Growing Challenge

Apple is increasingly experiencing challenges with its efforts to sell its products in Asian countries. Besides its shrinking China smartphone market share, Apple is struggling to enter the Indonesian market. Earlier this year, Indonesia sustained its iPhone sale ban. The Asian country did this even after Apple committed a $1 billion investment to build a production facility in the country.

According to Indonesia, the iPhone maker has not complied with the country’s rules that require smartphones sold in the country to comprise a minimum of 35% locally-manufactured parts. Indonesia said the $1 billion that the big tech plans to spend on the construction of the Apple AirTag factory is not sufficient to meet this requirement.

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Shift to Domestic Brands

Data from China’s Academy of Information and Communications Technology (CAICT) shows a drop in November foreign brand sales, from 5.769 million units in 2023 to 3.04 million units in 2024. The decline comes soon after the 44.25% drop recorded in China’s mobile market in October 2024.

Apple accounts for the biggest share of foreign smartphones in China. Other competitors such as Samsung constitute a small section of the market. China’s foreign phone sales expose the impact of domestic brands like Huawei.

Last year, Huawei aggressively launched a range of high-end smartphones in the Chinese market. Its new products are increasingly becoming popular among Chinese buyers. In the US, Huawei’s smartphone sales were crippled by government sanctions back in 2021.

Fierce Competition

Apple sales decline in the Chinese market is largely due to the fierce competition it’s currently facing from domestic players like Huawei. The company’s performance has also been affected by the slowing economy. Consumer prices in China dipped significantly in November 2024 and were at their lowest in five months. The drop was triggered by deflation concerns and economic uncertainty that affected household spending.

In a bid to boost domestic sales and expand its market share, Huawei announced discounts of up to $411 on several high-end smartphones, watches, headphones, and tablets last week. Apple reacted to this move by launching a rare 4-day promotion with price cuts of up to $68.50 dollars on its top models to boost sales.

Huawei is one of the strongest Apple rivals since its 2023 resurgence with locally-manufactured premium chipsets. Apple fell out with its top five Chinese smartphone vendors in quarter 2 of 2024. This fallout led to a 0.3% Apple sales drop in China in quarter three sales. Huawei’s sales grew by 42% in the same period.

Counting on Apple AI

Apple is counting on its iPhone 16 series to regain its momentum in the Chinese smartphone market. The US big tech unveiled iPhone 16 in September 2024 with the promise that it will provide users with a range of AI features through Apple Intelligence.

But Apple AI is still not accessible to Chinese users due to the complicated AI regulations in the country. However, rival smartphone makers have been marketing their own AI features. Apple has reportedly commenced discussions with Tencent and TikTok’s mother company Bytedance about integrating AI models in iPhones sold in China.

Apple considers these partnerships as critical in navigating the competitive Chinese market. Over the last few months, the US big tech has been experiencing a range of challenges in the Asian country, including crackdown on its app store fees. In August 2024, Apple intensified its efforts to convince ByteDance and Tencent to seal loopholes that enabled in-app developers to bypass its 30% commission.

Apple CEO Tim Cook visited China several times in 2024 to boost partnerships with domestic smartphone companies. In October 2024, Cook met with Chinese officials in Beijing to discuss rising competition in China and Apple Intelligence rollout.

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