Sales of foreign-branded smartphones in China, including Apple’s, slumped by 9.7% year-on-year in May 2025, with just 4.54 million units shipped, according to data from the China Academy of Information and Communications Technology (CAICT).
The broader mobile phone market in the country fared even worse, declining by 21.8% due to waning consumer demand. Despite maintaining its position as the top foreign brand, Apple is seeing its dominance rapidly erode in the face of mounting local competition.
Apple’s market share in China has dwindled to just 8%, with March 2025 figures showing a nearly 50% drop in shipments to 1.89 million units. Domestic rivals such as Huawei, Xiaomi, Oppo, and Vivo have surged ahead, offering devices loaded with AI-powered features, superior battery technology, and foldable displays — all at more competitive prices. Meanwhile, Apple has struggled to deploy its AI suite in China due to strict regulatory hurdles, giving homegrown brands an edge in relevance and appeal.
In a bid to regain traction, Apple introduced deep price cuts during the “618” mid-year shopping festival, slashing the iPhone 16 Pro’s price by up to 2,530 yuan on JD.com. These price drops pushed some iPhones below the 6,000 yuan mark, qualifying them for a government subsidy under China’s smartphone upgrade programme. While the discounts provided a short-lived boost in Q1, consumer enthusiasm waned by May, with many opting to delay phone upgrades altogether.
Analysts warn that Apple faces an uphill battle in a market marked by tech nationalism, longer device lifespans, and a strong domestic innovation ecosystem. With CAICT figures painting a grim picture and brand loyalty shifting towards local players, Apple’s current strategy of discounting may be insufficient. As the second half of 2025 unfolds, the tech giant must find ways to balance regulatory compliance, innovation, and cultural relevance if it hopes to remain a major player in China’s evolving smartphone landscape.