Apple Inc. is projected to face yet another year of declining iPhone shipments in China, as mounting competition from domestic brands—particularly Huawei Technologies—continues to erode its market share in the world’s largest smartphone market, according to new data from IDC.
The US tech giant’s shipments in China are forecast to fall by 1.9% in 2025, driven by Huawei’s renewed momentum in the premium segment and a broader economic slowdown affecting consumer spending. IDC’s report, published Thursday, also attributes the decline to Apple’s exclusion from a major government subsidy initiative, which favours consumer electronics priced below 6,000 yuan (approx. US$818)—a threshold that disqualifies most iPhone models.
By contrast, China’s overall smartphone market is projected to expand by 3% in 2025, buoyed by demand for Android devices that benefit directly from the government’s consumer stimulus policies.
The data highlights the intensifying challenges Apple faces in maintaining its foothold in China, its second-largest market after the United States. The competitive landscape has shifted rapidly, particularly with Chinese manufacturers leading the charge in integrating artificial intelligence (AI) capabilities into their devices. Apple, meanwhile, is still awaiting regulatory clearance to introduce its own AI-driven service, Apple Intelligence, in the Chinese market.
For the fiscal quarter ending 29 March 2025, Apple reported a 2.25% year-on-year decline in revenue from the Greater China region—which includes mainland China, Hong Kong, and Taiwan. This follows an 8% revenue drop for the fiscal year ending 28 September 2024, and a 2% decline the previous year, further underlining the company’s diminishing momentum in the region.
In the first quarter of 2025, iPhone shipments in China plunged 9% year-on-year, making Apple the only brand among the top five vendors to post a decline, according to IDC. In sharp contrast, Xiaomi’s shipments surged 39.9%, and Huawei recorded a 10% increase during the same period.
Sales figures echoed the trend. According to Counterpoint Research, iPhone sales declined 7.7% year-on-year in the first quarter, while Huawei saw its handset sales jump 28.5%.
Despite these headwinds, there are signs of short-term reprieve. Deep discounts during China’s upcoming 618 shopping festival—the nation’s largest retail event outside of Singles’ Day—may help bolster iPhone sales. Moreover, the anticipated launch of the iPhone 17 series in September, expected to feature substantial hardware upgrades, could provide renewed momentum for Apple in the Chinese market.
-South China Morning Post
