Apple's iPhone Shipments in China Drop 9% in Q1, Marking Seventh Consecutive Quarterly Decline

Xiaomi Surges Ahead While Apple Struggles Amid Premium Pricing and Subsidy Limitations

Beijing – Apple’s grip on the Chinese smartphone market weakened further in Q1 2025, as the company’s iPhone shipments declined 9% year-on-year, according to the latest data from research firm IDC. Apple remains the fifth-largest smartphone vendor in China, but its market share dropped to 13.7%, down from 17.4% in the previous quarter, with shipments falling to 9.8 million units.

This marks Apple’s seventh straight quarterly decline in the world’s largest smartphone market, underscoring the challenges it faces in sustaining growth amid increasing domestic competition and shifting consumer dynamics.

Xiaomi Leads Growth Amid Market-Wide Recovery

While Apple saw its numbers shrink, rival Xiaomi surged ahead, registering a 40% increase in smartphone shipments, reaching 13.3 million units in the quarter. The overall Chinese smartphone market grew 3.3%, showing signs of recovery after an extended slowdown.

IDC attributes Xiaomi’s performance to competitive pricing and strong alignment with government-led subsidy programs, which favor smartphones priced below CNY 6,000 (approx. $820 or ₹70,000).

Apple Misses Out on Subsidy-Driven Boost

One of the major headwinds for Apple is its premium pricing strategy, which disqualified most iPhone models from the Chinese government’s Q1 2025 consumer electronics subsidy scheme. Introduced in January, the initiative offered 15% refunds on eligible devices, but only those priced under the CNY 6,000 threshold were covered — effectively excluding Apple’s flagship devices.

IDC analyst Will Wong commented, “Apple’s premium pricing structure has limited its participation in the market’s recent growth surge, which was largely subsidy-driven.”

Outlook: Challenges Mount as Local Players Gain Ground

As Chinese smartphone brands continue to deliver feature-rich, competitively priced alternatives, Apple’s position in the market remains under pressure. With local brands adapting quickly to policy shifts and offering broader model portfolios across price segments, Apple may need to reconsider its pricing or expand mid-tier offerings to remain competitive.

Summary: Apple Q1 2025 China Market Performance

• Shipments: 9.8 million units

• Market Share: 13.7% (vs. 17.4% in Q4 2024)

• Year-on-Year Decline: 9%

• Ranking: 5th largest smartphone vendor in China

• Subsidy Impact: Most iPhones priced above the CNY 6,000 eligibility threshold