Apple Inc. reported a 9% year-over-year drop in smartphone shipments in China for the first quarter of 2025, marking its seventh consecutive quarterly decline, according to data from research firm IDC.
Shipments fell to 9.8 million units, reducing Apple’s market share to 13.7%, down from 17.4% in the previous quarter.
In stark contrast, market leader Xiaomi posted a 40% surge in shipments, reaching 13.3 million units and helping drive overall industry growth of 3.3% during the same period.
IDC analyst Will Wong noted that Apple’s premium pricing model has hindered its ability to benefit from recent Chinese government subsidies introduced in January. The subsidy program refunds 15% of the purchase price for smartphones and select consumer electronics priced below 6,000 yuan (approximately $820), a segment in which Apple’s high-end devices typically do not qualify.
As lower-cost competitors capitalized on the subsidy-driven demand, Apple continued to lose ground in a highly competitive and price-sensitive market.
