Apple's new AI iPhones aren't yet moving the dial

Apple's iPhone 16 didn't move the needle in 2024.

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• Apple's global market share of smartphone sales slipped in 2024.
• Apple's AI, Apple Intelligence, isn't available in Greater China, impacting sales.
• Chinese competitor Xiaomi grew the fastest, according to Counterpoint data.

Apple's 2024 was defined by significant launches like the Vision Pro and Apple Intelligence, but the iPhone lost ground to smartphone competitors last year.

While some of its competitors saw fast growth in 2024, Apple's global market share fell to 18% — a one percentage point drop year over year, according to data from Counterpoint. The amount of phones it sold fell 2%, while the overall market grew 4%.

The iPhone 16, which Apple described as its first model built for AI, was released in September, and some analysts expected it to be a driver of sales as people upgraded to get all the benefits of Apple Intelligence. Wedbush Securities' Dan Ives coined it a "golden" upgrade cycle — but it hasn't happened yet.

Apple Intelligence isn't available in a key market for Apple: Greater China. The iPhone maker is reportedly working to collaborate with a local tech company to bring its AI to smartphones in the region. Counterpoint said Chinese competitor Xiaomi grew handset sales the fastest in 2024.

Apple has been facing headwinds in the region for a while; fourth-quarter revenue missed estimates in Greater China

Samsung had the largest global market share with 19% in 2024. That was due, in part, to its AI-enabled S24 series, which outperformed models that came before it, Counterpoint said.

Apple was notably late with its entrance into AI. Apple Intelligence came months after competitors like Meta and Microsoft launched their genAI features and years after OpenAI's ChatGPT took the tech industry by storm in 2022.

The Apple Intelligence features that have rolled out so far have been met with mixed reviews, and its availability is limited to iPhone 15 Pro models or later. Apple said users can expect to see more AI-powered tools come out in April.

Apple has laid the foundation of its AI push, but the challenges it faced in 2024 are still present in 2025.

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