iPhone Sales Just Tanked in China And Local Brands Are Loving It

Apple’s having a bit of a rough time in China right now. According to new data from the China Academy of Information and Communications Technology, foreign smartphone shipments — a category basically dominated by iPhones — dropped nearly 50% year-over-year in March. That’s not a typo.

We’re talking 1.89 million units shipped in March 2025, compared to 3.75 million in the same month last year. That’s a steep drop no matter how you slice it — and it’s pushed Apple’s share of the Chinese smartphone market down to around 8%, while domestic brands now control a whopping 92%.

Oof.

So, What’s Going On?

It’s not just a one-month fluke. For the full first quarter of 2025, non-Chinese phone shipments fell more than 25%, while total smartphone shipments in China actually went up by 3.3%. Translation? People in China are still buying phones — just not iPhones.

And the brands scooping up Apple’s lost ground? No surprises here. According to Counterpoint Research:

Huawei is leading with a 19.4% share

Vivo sits at 17%

Xiaomi comes in with 16.6%

Oppo is holding strong at 14.6%

Apple? Now down to 14.1%, falling to fifth place

Huawei in particular has made a serious comeback — between its custom chips and HarmonyOS Next, it’s starting to feel like Apple’s the one catching up, not the other way around.

Government Incentives Aren’t Helping Apple Either

Here’s the kicker: government subsidies are making local phones even more appealing. Chinese consumers get 15% back on electronics priced under 6,000 yuan (about $820). Apple’s iPhone 16 base model? Just a hair below that — 5,999 yuan — but still not quite in the sweet spot when you factor in Pro models or configurations with more storage.

So while Chinese buyers can get a hefty discount on a local flagship, they’re paying near full price for an iPhone — and that’s clearly starting to hurt.

Apple’s Playing Defense — and Cutting Prices

In response, Apple’s already cutting prices on some iPhone 16 Pro models to stay competitive ahead of the big “618” shopping festival. It’s a rare move, and a sign that Cupertino knows it’s losing traction in one of its most important global markets.

Even Tim Cook acknowledged the challenge during the last earnings call. Revenue from Greater China dropped 2% in the March 2025 quarter. That might not sound like a big dip — but keep in mind, that’s following an 11% drop during the 2024 holiday season. The trend isn’t great.

Is AI the Missing Piece?

Analysts are also pointing to one more thing: AI. While Chinese brands are racing to pack in generative AI features, Apple’s been slower to roll them out — especially in comparison to the speed of innovation in the Chinese market.

And in 2025, if you’re not showing off some flashy AI feature on your flagship phone, you’re already behind.

Conclusion

Apple’s slump in China isn’t just about pricing or policy — it’s about momentum. Local brands are innovating fast, backed by government support, and riding a wave of national pride. Meanwhile, Apple’s playing catch-up, both in features and in market share.

Will price cuts and future AI upgrades turn things around? Maybe. But for now, it’s pretty clear: China’s buying local, and Apple’s got some serious ground to make up.

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Eric Sandler

Chief Writer at WiFi Planet

Eric Sandler is a veteran US tech writer with over 25 years of experience covering the latest advancements in the world of technology. From groundbreaking innovations to in-depth reviews, Eric has built a reputation for delivering insightful, reliable content. His work spans across a variety of tech topics, including smartphones, gadgets, AI, and more, making him a trusted voice in the industry.