Key Takeaways
1. Apple’s share in China’s smartphone market is declining, with local brands capturing 92% of the market.
2. Total smartphone shipments increased by 6.5% in March 2025, but foreign brands, including Apple, saw a decline of over 25%.
3. The Chinese government’s subsidy policies disadvantage Apple, as its Pro models exceed the price limit for subsidies.
4. Apple’s revenue from Greater China has decreased for seven consecutive quarters, indicating growing pressure in the market.
5. Despite a strong manufacturing and retail presence, local brands like Huawei, Vivo, Xiaomi, and Oppo are becoming more popular than Apple.
Apple’s share in China’s smartphone industry is diminishing as local rivals continue to advance. Recent shipment figures from the China Academy of Information and Communications Technology (CAICT) for March 2025 indicate that total smartphone deliveries have increased by 6.5 percent compared to the previous year, reaching 22.73 million units. Chinese brands have taken 92 percent of this market share, leaving non-Chinese companies—primarily Apple—with only 1.85 million units, which is about half of what they sold last year.
Quarterly Trends
The quarterly results show a similar trend. From January to March, total shipments rose by 3.3 percent to 69.67 million units. However, Chinese manufacturers saw a growth of 9 percent, while foreign brands faced a decline of over 25 percent. Foreign companies made up about 8 percent of the total shipments—1.85 million units—with Apple holding a significant portion of that share, yet Counterpoint Research ranks Huawei, Vivo, Xiaomi, and Oppo as more popular than the iPhone maker.
Impact of Policies
Policies from the government have further increased the challenges for Apple. The 15 percent “buy-new” subsidy from Beijing is only applicable to devices priced under 6,000 yuan (roughly $832). While Apple’s standard iPhone 16 starts at 5,999 yuan (about $832), its Pro models exceed this price limit. To stay competitive ahead of the 618 shopping festival, Apple is reportedly considering offering larger discounts on its Pro models.
Apple’s financial data indicates that the pressure is mounting. Greater China accounted for 16.8 percent of Apple’s global revenue in its fiscal second quarter, but this figure has been on a downward trend for seven consecutive quarters. The last significant growth occurred in early 2022, when sales were still increasing by double digits.
Although Apple has a large manufacturing network and retail presence in China, the market’s current energy is increasingly leaning towards local brands.
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