Apple Inc.’s iPhone sales in China fell by 18.2% in the December quarter, marking a significant decline in its second largest market after the US.

This downturn caused Apple to lose its position as the top-selling smartphone in China, dropping to third place with around 16% market share during the three-month period.

The decline in China contributed to a global 5% decrease in iPhone sales during the crucial holiday shopping season.

While Apple’s latest devices include AI upgrades, many features remain inaccessible in China due to limitations in the local AI infrastructure.