Apple's China Smartphone Shipments Decline 9% in Q1 Amid Rising Local Competition

Apple’s smartphone shipments in China declined by 9% in the first quarter of 2025, marking a challenging start to the year for the US tech giant in the world’s second-largest economy. The drop, reported by market intelligence firm IDC, underscores intensifying competition from domestic players and shifting consumer sentiment.

Despite Apple's strong brand loyalty in China, local manufacturers — particularly Huawei — have surged ahead in recent months, buoyed by strong national support, technological advances, and competitive pricing in the premium smartphone segment.

According to IDC’s quarterly report, Apple’s shipment decline comes amid flat overall market growth, signaling that rival brands are directly eating into its market share.

Domestic Brands Narrow the Gap

Chinese technology firm Huawei has rapidly regained momentum with its latest Mate series smartphones, many of which are powered by domestically produced 5G chips. This has resonated with consumers amid growing calls for technological self-reliance.

Other brands like Xiaomi, Vivo, and Honor also reported gains in the quarter, further pressuring Apple’s position, particularly in the high-end segment priced above $600 — a category long dominated by the iPhone.

“Apple is still a strong player in the premium space, but its dominance is no longer guaranteed,” said Bryan Ma, VP of Devices Research at IDC. “Local players are improving their product quality and aggressively targeting Apple's user base.”

Weak Demand and Market Uncertainty

Analysts say muted consumer enthusiasm for the iPhone 15 series contributed to the slowdown. The model, launched late last year, failed to introduce significant changes from its predecessor, dampening upgrade cycles.

A weakening Chinese economy and cautious consumer spending have also impacted high-end smartphone sales. Apple’s pricing strategy, traditionally seen as a premium benchmark, is now facing resistance in price-sensitive segments.

Moreover, lingering geopolitical tensions between Washington and Beijing continue to cast a shadow over Apple’s business operations in the region.

Government Scrutiny and Operational Headwinds

While there is no official ban, reports have emerged of restrictions on iPhone use in certain Chinese government departments and state-affiliated institutions — a development seen by many as part of China’s broader push to promote homegrown technologies.

In response to these risks, Apple has expanded manufacturing operations in India and Southeast Asia. However, China remains a critical market, accounting for a significant portion of the company’s global revenue and iPhone sales.

Industry Outlook

Despite the setback, experts believe Apple retains long-term potential in the Chinese market, provided it can adapt to changing consumer expectations and intensifying local competition.

“Apple needs to rethink its China strategy,” said Wilson Zhang, a senior analyst at TechInsights China. “It must innovate faster, localize better, and re-establish stronger brand resonance in a rapidly evolving market.”

The company is expected to address its China performance in its upcoming quarterly earnings report later this month.

Key Takeaways:

• Apple’s China shipments dropped 9% in Q1 2025, per IDC.

• Huawei and other domestic brands gained ground in premium segments.

• Economic slowdown and weak demand hit iPhone 15 sales.

• Geopolitical tensions continue to impact Apple’s China operations.