Despite being one of the world’s leading tech giants, Apple is facing significant challenges in the Chinese market. As one of the company’s most critical markets, China has long contributed a substantial share of iPhone sales. However, domestic manufacturers like Xiaomi, Huawei, Oppo, and Vivo are increasingly dominating the market, pushing Apple into a corner.
iPhone Sales Down, Local Brands on the Rise
According to recent data from global market research firm IDC, Apple’s situation in China is growing more precarious. While the overall smartphone market in China grew by 3.3% in the first quarter of 2025 compared to the previous year, iPhone sales dropped by 9%, falling to 9.8 million units. This led to Apple’s market share declining from 15.6% to 13.7%, marking the seventh consecutive quarter of decline.
Meanwhile, local competitors are gaining ground. Xiaomi saw a 40% increase in shipments, reaching 13.3 million units and securing the top spot in the market. Huawei followed with a 10% growth and 12.9 million units sold. Oppo and Vivo held third and fourth positions with 11.2 million and 10.3 million units shipped, respectively.
Pricing Strategy Undermines Apple’s Position
One of the key reasons for Apple’s declining sales is its pricing model. At the beginning of 2025, the Chinese government introduced a subsidy program that offers a 15% rebate on smartphone purchases under 6,000 yuan (approximately $820). While the base model of the iPhone 16 starts at 5,999 yuan, most of its variants exceed the threshold and thus are not eligible for the subsidies.
This puts Apple at a disadvantage, as local brands that offer more competitively priced devices can benefit from these government incentives and appeal more to price-sensitive consumers.
Apple’s grip on the Chinese smartphone market is loosening. With local manufacturers surging ahead and government policies favoring lower-cost alternatives, Apple must rethink its approach. Introducing region-specific strategies or more affordable models may be necessary steps if the company aims to regain lost ground in this vital market.