iPhone shipments fall nearly 50% in China as Apple slips to fifth place

Apple iPhone

Foreign-branded smartphone shipments in China, led by Apple, collapsed by nearly half in March 2025, according to new figures from the China Academy of Information and Communications Technology (CAICT). Apple saw shipments drop 49.6% year-over-year, falling from 3.75 million units to just 1.89 million. That now leaves foreign players with only 8% of the market—down from 16%—as domestic brands tighten their grip.

Despite Apple’s decline, China’s overall smartphone market grew 3.3% in Q1, signaling a shift in consumer loyalty. Huawei reclaimed the top spot with 19.4% share, followed by Vivo, Xiaomi, and Oppo. Apple fell to fifth place with 14.1%.

Multiple factors are behind Apple’s decline: Huawei’s comeback with in-house chips and HarmonyOS Next, a slow rollout of generative AI features, and China’s pro-domestic policies. A government electronics subsidy gives a 15% rebate on devices priced under 6,000 yuan ($820)—just enough to exclude Apple’s iPhone 16, priced at 5,999 yuan.

Apple is now slashing iPhone 16 Pro prices ahead of the upcoming 618 shopping festival. CEO Tim Cook, in a recent earnings call, acknowledged headwinds in Greater China, where revenue fell 2% in the March quarter. While better than the 11% holiday-season drop in 2024, it marks a continued erosion of Apple’s footing in the region.

Analysts say Apple’s slower AI roadmap is costing it valuable momentum in China’s innovation-driven smartphone market.