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.

The offer is timed to take advantage of the 618 shopping festival, one of China’s largest annual retail events. From now until June 18, Apple is offering extra credit on eligible device trade-ins, directly targeting the lead-up to China’s massive 618 shopping festival. 

This isn’t a generic promotion, it’s a sharp, tactical initiative by the company to claw back sales as consumer interest shifts toward other brands.

iPhone trade-in values are getting a temporary increase. For instance, customers can now get up to RMB 5,700  ($785) for trading in an iPhone 15 Pro Max. Even the lower-tier iPhone 15 pulls up to RMB 3,400 ($468) in credit. 

These incentives, which are available both online and in-store, come in addition to regular discounts currently being offered by major Chinese e-commerce platforms, some as steep as $351 off on certain iPhone 16 models.

The timing is not coincidental. The 618 festival, named for its June 18 climax, is one of China’s biggest annual retail events, usually surpassing $100 billion in total sales. For Apple, it is a huge moment to counteract its declining performance in the region.

According to first-quarter 2025 figures, Apple’s iPhone shipments in China fell 9% year-on-year. It’s not hard to see why, local companies are moving quickly with aggressively priced, high-spec alternatives. Meanwhile, Apple’s traditionally premium pricing has made it less competitive in a price-sensitive environment.

This is not just about selling phones, Apple is asking users to bring their old devices, walk into a store (or log in online), and commit now. And it’s not hiding its motivations. “From now until June 18, trade in for an extra $100 off your iPhone*,” the website says. The company knows it’s in a fight for market share, and it’s pressing every available advantage.

Apple’s trade-in programme in China also includes iPads and Apple Watches, but it’s the iPhone deals that are leading. While the tech giant frames the offer as an environmental win, stating that devices will either be refurbished for reuse or recycled for materials, this is unmistakably a commercial tactic.

The logistics are designed for minimal friction. Trade-in values are calculated upfront, customers are guided step-by-step through backup and return procedures, and credits can either be deducted at checkout or transferred to a bank account. For those not ready to buy, the cash-out option adds flexibility.

Apple’s China problem is beyond pricing. It’s about perception, adaptability, and timing. This trade-in is a nod to all three. The company is trying to change momentum. We’d see if that’s enough to reverse a 9% drop in sales.