Asia-Pacific
Apple slips in China as local brands surge ahead
Apple’s smartphone shipments in China fell 9% in Q1 2025, while Xiaomi surged 40% amid government subsidies.
Headline
Apple’s smartphone shipments in China fell 9% in Q1 2025, while Xiaomi surged 40% amid government subsidies.
Context
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.
Evidence
Pending intelligence enrichment.
Analysis
Also read: Trump urges Apple to move iPhone production to U.S. Also read: Tribunal blocks UK’s bid to hide Apple encryption case 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.
Key Points
- 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
Actions
Pending intelligence enrichment.
