As AI smartphones reach a critical juncture, major manufacturers are ramping up their hardware and AI application development. Industry watchers expect competition to intensify when Apple's Apple Intelligence becomes available in China.
According to reports from ITSB and Sina Finance, Huawei and Xiaomi have captured over half of China's AI smartphone market share, holding 34.8% and 26.9% respectively. Vivo, Honor, Oppo, and Samsung Electronics divide the remaining market share.
Through the first three quarters of 2024, Huawei has shown remarkable momentum, with its Mate 60 Pro, Mate 60 Pro+, Mate 60, and Pura 70 models securing four positions in the top ten list and claiming a 27% market share. Xiaomi maintains a strong presence with three models in the top ten and a 21% market share, while Vivo holds 9% with two models. Together, these top ten AI smartphones represent 62% of the market.
Urban adoption leads the way
Consumer adoption shows a clear urban-rural divide, with tier-1 and tier-2 cities leading AI smartphone purchases. The technology has yet to gain significant traction in tier-3 and tier-4 cities. This disparity stems from the fast-paced urban lifestyle, where AI features offer practical benefits in professional, social, and daily activities. Higher-income levels and greater technological receptivity in major cities also contribute to this trend.
Demographics and professional appeal
The 25-34 age group leads adoption rates at 35.9%, combining strong purchasing power with technological enthusiasm. Professionally, knowledge workers in high-paying sectors - including securities, programming, IT, legal, and banking - show the strongest inclination toward AI smartphones, likely due to their mentally demanding work environments.
Market momentum shows signs of cooling
While manufacturers embrace slogans like "All in AI" and "Opening a New Era of Mobile AI," market growth has moderated after initial enthusiasm. Chinese AI smartphone shipments surged 131% year-over-year in the first quarter of 2024, but sequential growth slowed to 60% in the second quarter and 38% in the third quarter of 2024, suggesting waning momentum.
Source: MR Tech, November 2024
