Apple is facing a growing challenge in one of its most important markets—China. According to the latest report from global research firm IDC, the tech giant saw a 9% drop in smartphone shipments in China during the first quarter of 2025 compared to the same period last year. This marks the seventh consecutive quarter of decline for Apple in the region.
The iPhone maker shipped 9.8 million units, capturing 13.7% of the market share. That’s a significant fall from 17.4% in the previous quarter. What’s even more striking is that Apple was the only major smartphone manufacturer to experience a decline in sales during this period.
Meanwhile, Chinese rival Xiaomi surged ahead, increasing its shipments by 40% to 13.3 million units. Overall, smartphone shipments across the Chinese market grew by 3.3%, suggesting that Apple is losing its competitive edge as local brands continue to thrive.
So, what’s behind Apple’s continued slump?
Industry analysts point to pricing as a major factor. Apple’s premium price tags have made it difficult for the company to take advantage of new government subsidies rolled out in January. These incentives offer consumers a 15% refund on electronic products priced under 6,000 yuan (around $820). However, most iPhones exceed that threshold, meaning Apple devices don’t qualify for the discount—unlike more affordable local brands.
Will Wong, an analyst at IDC, noted that Apple’s failure to align its pricing strategy with local market dynamics has made it hard to compete. “Consumers are becoming more price-sensitive, and Apple’s flagship models remain too expensive to benefit from the subsidy program,” he said.
Apple’s struggle in China is a serious concern given that the country remains one of its largest markets outside the United States. If the company doesn’t adapt its strategy, it risks falling further behind domestic players like Huawei, Vivo, Oppo, and Xiaomi, which continue to gain momentum.
With competition intensifying and economic pressures influencing consumer behavior, Apple may need to rethink its pricing and localization strategies to stay relevant in the world’s largest smartphone market.
