Apple slips in China as local brands surge ahead

Apple slips in China as local brands surge ahead is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Apple’s Q1 smartphone shipments in China fell to 9.8M, down 9% year-on-year
• Xiaomi saw a 40% surge in sales, buoyed by government subsidies targeting mid-range devices

What happened: Apple lags as rivals ride market rebound

Apple’s smartphone shipments in China declined 9% year-on-year in the first quarter of 2025, falling to 9.8M units, according to data from research firm IDC. It was the only major brand to record a drop, and its seventh straight quarter of decline in the country. Apple’s market share shrank to 13.7%, down from 17.4% in the previous quarter.

By contrast, Xiaomi—the top smartphone vendor in China this quarter—saw shipments soar 40% to 13.3 million units. Overall, the Chinese smartphone market grew 3.3% year-on-year, indicating Apple’s struggles are more about its pricing and positioning than weak consumer demand.

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Why it’s important

Apple’s sales decline comes at a time when the Chinese government is actively encouraging consumer spending on electronics through targeted subsidies. The initiative, introduced in January, offers a 15% refund on devices priced below $820, a segment Apple largely does not participate in due to its premium pricing strategy.

IDC analyst Will Wong noted that this pricing mismatch has placed Apple at a disadvantage, as mid-range Android manufacturers are better positioned to attract cost-conscious buyers. As a result, Apple risks losing further ground in a market where value-for-money is increasingly prioritised over brand prestige.