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Home ConsumerTech Phones

Foreign Smartphone Sales Drop 9.7% in May as Apple’s Market Share Shrinks to 8% in China

by Joan Aimuengheuwa
July 4, 2025
in Phones
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Foreign Smartphone Sales Drop 9.7% in May as Apple’s Market Share Shrinks to 8% in China
Apple iPhones

Apple iPhones

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Foreign-branded smartphone sales, including Apple’s, dropped 9.7% year-on-year in May 2025, with just 4.54 million units shipped. 

The latest data from the China Academy of Information and Communications Technology (CAICT) also revealed that total mobile phone shipments in the country declined by a much steeper 21.8%, due to reduced demand.

Although Apple is still China’s biggest foreign smartphone brand, its grip on the market is loosening. In March, the company’s shipments plunged nearly 50% year-on-year to 1.89 million units. Its market share is now just 8%. 

Chinese brands like Huawei, Xiaomi, Oppo, and Vivo have overtaken it, not only in volume but in relevance.

The reason is not hard to find. Domestic competitors are offering devices with cutting-edge AI features, lightning-fast charging, innovative foldable designs, and more affordable price tags. 

Meanwhile, Apple has struggled to roll out its own AI-powered tools in China due to regulatory restrictions. 

That delay has cost it precious momentum, especially against Huawei’s Mate and Nova Series, which come fully loaded with AI capabilities tailored for the Chinese market.

To slow the loss, Apple has resorted to aggressive price cuts. During May’s “618” mid-year shopping festival, the company slashed up to 2,530 yuan ($351) off the iPhone 16 Pro (128GB), bringing its price down to 5,469 yuan on JD.com. 

This discount placed some iPhones under the 6,000 yuan threshold, making them eligible for a government subsidy of up to 500 yuan.

This government subsidy, part of China’s nationwide smartphone upgrade programme launched in early 2025, briefly helped Apple’s sales during the first quarter. But by May, the boost had worn off. 

Many consumers are choosing to delay upgrades altogether, instead holding on to their devices for longer periods, yet another blow to Apple’s quarterly outlook.

The signs are all too familiar; a saturated market, longer device lifecycles, and rising nationalist preferences for homegrown tech brands. In a country that now leads in foldable phones and smartphone-integrated AI, Apple’s once-sleek reputation is no longer enough.

CAICT has not disclosed brand-specific figures, but there’s little ambiguity about the trend. Apple is losing ground, and fast. Discounts may win short-term sales, but they won’t fix the core issue, Apple is no longer ahead of the curve in China.

As we move into the second half of 2025, we wonder if Apple can adapt to local demands faster than rivals can out-innovate it. Can it navigate China’s regulatory space while keeping its global brand consistent? And more pressingly; will it remain a major company in what was once its second-largest market?

The numbers show the answer is not guaranteed.

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Tags: appleApple AI rollout ChinaApple China strugglesApple discounts ChinaApple market share 2025Apple vs Chinese brandsCAICT smartphone dataChina phone market 2025China smartphone salesforeign smartphone sales ChinaHuawei market shareHuawei vs AppleiPhone 16 price cutiPhone Sales ChinaJD.com iPhone discountmobile phone shipments ChinaOPPOsmartphone market China May 2025smartphone subsidy Chinatech news ChinaVivoXiaomi
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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