iPhone Shipments Crash 50% in China as Local Brands Dominate

Foreign-branded smartphone shipments in China, dominated by Apple’s iPhone, dropped dramatically in March 2025, plunging 49.6% year-over-year according to data released by The China Academy of Information and Communications Technology (CAICT).

The steep decline saw shipments fall to just 1.89 million units, down from 3.75 million during the same period last year. That shrinks Apple’s share of the Chinese market to approximately 8%, while domestic brands now control 92% of smartphone shipments.

For the entire first quarter, non-Chinese brand shipments declined over 25%, while total smartphone shipments in China actually increased by 3.3%.

Apple’s struggles come as domestic competitors have gained ground. Counterpoint Research reports Huawei now leads with a 19.4% share, followed by Vivo (17%), Xiaomi (16.6%), and Oppo (14.6%). Apple has slipped to fifth place with 14.1%.

Several factors are driving Apple’s declining fortunes. The company faces competition from rejuvenated local brands like Huawei, which has rebounded with proprietary chips and its HarmonyOS Next software.

Chinese government policies appear to be playing a role too. Under government subsidies, consumers of electronics get a 15% refund of products that are priced under 6,000 yuan ($820). Apple’s standard iPhone 16 starts at 5,999 yuan.

In response to the declines, Apple is reportedly cutting prices on some iPhone 16 Pro models ahead of China’s “618” shopping festival.

Apple CEO Tim Cook acknowledged the challenges during his recent earnings call, noting that revenue from Greater China dropped 2% in the quarter ending March 2025. That was actually an improvement compared to the 11% decline during the 2024 holiday season.

Analysts also believe Apple’s slower adoption of generative AI features is a disadvantage in the innovative Chinese market.

(Via DigiTimes.)

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