Apple's China Market Share Crashes
The Chinese smartphone market witnessed a significant shift in March 2025, with foreign brands experiencing a dramatic decline. Data from the China Academy of Information and Communications Technology (CAICT) reveals a staggering 49.6% year-over-year drop in foreign-branded smartphone shipments, plummeting to a mere 1.89 million units. This contrasts sharply with the 3.75 million units shipped during the same period in 2024.
Domestic Brands Dominate
This sharp decline has drastically altered the market landscape. Apple, once a major player, now holds an estimated 8% market share, a far cry from its previous position. Domestic brands, in contrast, command a dominant 92% share of the market. Huawei leads the pack with a 19.4% share, followed by Vivo, Xiaomi, and Oppo. Apple has slipped to fifth place with a 14.1% share.
Factors Contributing to Apple's Decline
Several factors contribute to Apple's struggles. The resurgence of domestic brands, particularly Huawei, armed with its own chips and HarmonyOS Next software, poses a significant challenge. Furthermore, government policies, including subsidies offering a 15% refund on electronics under 6,000 yuan ($820), benefit domestically produced devices, placing Apple's iPhone 16, starting at 5,999 yuan, at a slight disadvantage.
Apple's response has included reported price cuts on certain iPhone 16 Pro models, anticipating the upcoming "618" shopping festival. The company's CEO, Tim Cook, acknowledged these challenges, noting a 2% revenue drop from Greater China in the March 2025 quarter, an improvement over the 11% decline seen during the 2024 holiday season.
Analysts also point to Apple's relatively slower integration of generative AI features as a factor hindering its competitiveness in the innovative Chinese market. The overall picture depicts a significant shift in the Chinese mobile landscape, with domestic brands firmly establishing their dominance.
Source: Mac Rumors