Apple was dethroned as China's biggest smartphone seller in 2024, with local rivals Vivo and Huawei overtaking the iPhone maker after its annual shipments in the country declined 17%, data from research firm Canalys showed on Thursday.

Apple's (AAPL) stock rebounded slightly Friday morning after Canalys reported a steep drop in iPhone sales in China, prompting Apple to slip to third place in Chinese smartphone sales rankings behind Huawei and Vivo.

Apple lost its No. 1 spot in China as domestic rivals took advantage of the iPhone maker’s lack of artificial intelligence features available on phones purchased in the country, according to data from research firm Canalys.