Apple faced a challenging first quarter in China, reporting a 9% decline in iPhone shipments compared to the same period last year. According to new data from research firm IDC, iPhone shipments dropped to 9.8 million units, shrinking Apple’s market share to 13.7%. Just last quarter, Apple held 17.4% of the Chinese market.
Meanwhile, China’s overall smartphone shipments grew by 3.3%, highlighting Apple’s unique struggle among major brands. Notably, Xiaomi experienced a major boost, with shipments rising 40% to 13.3 million units, claiming the top spot.
Pricing Blamed for Missed Opportunity
IDC analysts suggest Apple’s premium pricing strategy played a key role in the decline. At the start of the year, China introduced new government subsidies offering a 15% refund on electronic products priced below 6,000 yuan (around $820). Although Apple’s iPhone 16 base model starts at 5,999 yuan, it barely qualified for these incentives, limiting its appeal to bargain-seeking customers.
In contrast, local brands like Xiaomi, Oppo, and Vivo positioned themselves better to benefit from the subsidy program. As a result, they captured more consumer interest and boosted their sales during the quarter.
Apple Faces Continued Challenges
This marks the seventh consecutive quarter of shipment decline for Apple in China. The world’s largest smartphone market remains highly competitive, and even small price differences can greatly influence purchasing decisions.
While Apple still leads in the premium smartphone category globally, adapting to changing local market conditions will be crucial if the company hopes to regain ground in China. Otherwise, rising local players could continue to erode its market share.
As 2025 unfolds, all eyes will be on whether Apple adjusts its pricing or strategy to match the shifting dynamics in one of its most important international markets.
