Apple’s shipments of smartphones in China fell by 9 percent in the first quarter compared to the previous year, making it the only major manufacturer to experience a decline, according to data from research firm IDC. With shipments dropping to 9.8 million units, Apple now holds a market share of 13.7 percent, down from 17.4 percent in the preceding quarter. This marks Apple’s seventh consecutive quarter of decline.
Xiaomi surges ahead
Market leader Xiaomi saw its shipments soar by 40 percent to 13.3 million units, while the overall industry experienced a modest growth of 3.3 percent. Will Wong, senior research manager for Client Devices at IDC Asia/Pacific, noted that Apple’s premium pricing strategy has hindered the company from taking advantage of new government subsidies introduced in January, which stimulated growth in the first quarter. These subsidies refund consumers 15 percent on smartphones and other consumer electronics priced under 6,000 yuan ($820).
Growth in China’s smartphone market
According to IDC, China’s smartphone market shipped 71.6 million units in Q1 2025, reflecting a 3.3 percent year-on-year increase. This growth was largely driven by government subsidies that began in January 2025, coinciding with the peak sales season of the Spring Festival. While this performance outpaced global growth of 1.5 percent, it fell short of IDC’s projections, suggesting that the impact of the subsidies on consumer demand has been limited.
Impact of government subsidies
Most of the government subsidies were directed toward smartphones priced below Apple’s retail offerings, thereby artificially boosting local vendors. Wong stated, “Apple declined as its premium pricing structure prevented it from capitalizing on the subsidies.” This situation illustrates how China aimed to support local OEMs at Apple’s expense, he further noted.
Future market challenges
Wong also emphasized, “Xiaomi stood out as it regained the top spot after nearly a decade, a resurgence largely fueled by government subsidies that resonated with its value-conscious customer base.” Arthur Guo, senior research analyst in Client System Research for IDC China, added, “Looking ahead, the market is expected to face challenges as the US-China trade tensions may lead to cost increases and tighter consumer budgets.”
