China’s Smartphone Market Grows, But Apple Falls Behind

Things aren’t looking too shiny for Apple in China. According to the latest report from IDC, iPhone shipments dropped 9% year-over-year in Q1 2025.

That’s not just a little dip. This makes Apple the only major smartphone brand to actually decline while everyone else is out here growing.

To put numbers on it: Apple moved 9.8 million units this quarter, down from last year, and its market share slipped from 17.4% to 13.7%. Meanwhile, Chinese brands like Xiaomi are on the up and up seeing a wild 40% boost in shipments. In my honest opinion, that’s not a trend, that’s a shift.

So you wonder, what’s going on?

The Price Tag Problem

Let’s talk money first. China rolled out some sweet electronics subsidies earlier this year — 15% off any gadget under 6,000 yuan (~$820). Guess which major phone maker doesn’t really play in that price range? Of course, it’s Apple.

iPhones are great, but when your base model is priced above the subsidy cutoff and local brands are offering seriously good hardware for way less? It’s not rocket science why folks are choosing differently.

The AI Gap

Apple’s still playing catch-up here. While the iPhone 16 did introduce a few AI-lite features, the real Siri glow-up (aka “Apple Intelligence”) has been delayed until 2026 — and not even available in China yet thanks to regulatory red tape.

That’s a big miss. Chinese consumers are extremely tech-savvy and love smart features. Meanwhile, competitors like Huawei and Xiaomi are going all-in on AI, right now.

The Huawei Comeback

Let’s not forget the Huawei factor. Once down, now very not out, Huawei’s Mate 60 Pro series has made a strong comeback. The national pride factor is real, and when you add solid specs and aggressive pricing, it’s easy to see why Apple’s losing some mindshare.

Caught in the Crossfire

Let’s not forget this is unfolding while Apple’s already tangled up in the broader U.S.–China trade tensions. With ongoing pressure from both governments, shifting regulations, and rising nationalism in China, Apple’s position in the region is getting trickier by the day.