Sales of foreign-branded mobile phones in China, including Apple’s iPhones, increased slightly in April, according to data from the China Academy of Information and Communications Technology (CAICT).

Shipments rose to 3.52 million units, up from 3.5 million in April of the previous year.

Apple, the largest foreign mobile phone maker in China, has faced increasing competition from domestic manufacturers.

The company has offered discounts on its latest iPhone 16 models on Chinese e-commerce platforms, with reductions reaching up to 2,530 yuan (US$351).

This increase in April follows a 9% decline in Apple’s phone sales in China earlier this year.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Apple’s price cuts reflect shifting competition dynamics in China

Apple’s discounting strategy marks a significant shift from its historical premium positioning in China’s smartphone market, where iPhones were once viewed as luxury status symbols comparable to Gucci and Louis Vuitton 1.

The current discounts of up to 2,530 yuan ($351) on iPhone 16 models represent Apple’s response to intensifying competition from domestic brands that offer comparable features at lower prices.

This pressure has been building for years, as evidenced by Apple’s market share fluctuations. In 2015, Apple’s share grew to 13.4% despite maintaining prices three times higher than competitors 1, but by Q1 2025, Apple had fallen to fifth place with an 8% year-on-year decline 2.

Chinese brands have steadily eroded Apple’s premium advantage through aggressive innovation, with companies like Huawei capturing 19.4% market share in Q1 2025 through strong demand for its flagship models 3.

The latest sales uptick (3.52 million units from 3.50 million) suggests Apple’s price adjustments may be working as a short-term strategy, but the previous quarter’s 9% drop indicates the company faces structural challenges in maintaining its market position.

2️⃣ Chinese consumer behavior reveals deeper shifts in smartphone value perception

The marginal growth in foreign-branded phones masks a fundamental shift in how Chinese consumers evaluate smartphone value, with the ecosystem advantage Apple traditionally enjoyed becoming less relevant.

WeChat’s dominance in China means the operating system is no longer a significant differentiator, making it easier for consumers to switch between iOS and Android devices without losing essential functionality 4.