Apple's smartphone shipments in China fall 9% in Q1 2025

Apple’s smartphone shipments in China fell by 9% in the first quarter of 2025 compared to the same period last year, according to data from research firm IDC.

This represents the seventh consecutive quarter of decline for the company.

The company shipped 9.8 million units and held a 13.7% market share, down from 17.4% in the previous quarter.

Apple was the only major brand to see a decline, while Xiaomi led the market with a 40% rise in shipments to 13.3 million units.

IDC analyst, Will Wong, said Apple’s high pricing limited its eligibility for new government subsidies that favor electronics under 6,000 yuan (US$821).

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s subsidy program has reshaped competitive dynamics

The Chinese government’s smartphone subsidy program introduced in January 2025 has significantly altered market dynamics, creating an uneven playing field that benefits local brands.

The program offers a 15% discount on devices priced under ¥6,000 ($820), with reports showing smartphone sales surged 65% year-on-year during one week in January following its implementation1.

This price threshold was strategically set to favor domestic manufacturers, as most premium Apple devices exceed this limit, preventing them from qualifying for the government incentive.

Retailers have actively reduced prices on select models to qualify for the subsidy, creating a more competitive mid-range market where Chinese brands excel1.

The subsidy has contributed to Xiaomi’s 40% shipment surge mentioned in the news article, while adding an estimated 2-3 percentage points to overall market growth in China1.

This government intervention represents a significant shift in China’s approach to boosting domestic consumption, with analysts predicting continued benefits for local smartphone manufacturers throughout 2025.

2️⃣ Xiaomi’s strategic evolution from budget player to premium challenger

Xiaomi’s impressive 40% shipment growth in China reflects its successful transformation from a budget brand to a formidable competitor across all price segments.