Apple's iPhone shipments in China may drop further in 2025
What's the story
Apple is likely to witness a further decline in its iPhone shipments in China this year.
The anticipated drop is primarily due to the increasing competition from domestic brands, according to the market research firm IDC.
The company's smartphone shipments in the country are expected to fall by 1.9% in 2025, owing mainly to Huawei Technologies's continued dominance and a general economic slowdown in China.
Subsidy impact
Government subsidy program exclusion impacts iPhone sales
The IDC report also highlights another factor contributing to the decline in iPhone shipments: the exclusion of most iPhone models from a Chinese government subsidy program.
The initiative, aimed at consumer electronics priced under CNY 6,000 (approximately $818), has left Apple's devices out of the picture.
This has further dented the company's sales in an already competitive market.
In contrast, total smartphone shipments in China may grow by 3% this year as government subsidies boost demand for Android handsets.
Market dynamics
Huawei's resurgence and Apple's challenges
The anticipated decline in iPhone shipments highlights the growing challenges Apple has faced in China over the last few years.
The competition from local manufacturers has intensified, especially with Huawei's comeback in the premium smartphone market segment.
Also, while Chinese competitors have swiftly rolled out AI features in their devices, Apple is still waiting for regulatory approval in the country to launch Apple Intelligence.
These factors have made it increasingly difficult for the company to maintain its foothold in China.
Figures
Take a look at the figures
In the quarter ending March 29, Apple reported a 2.25% year-on-year (YoY) sales decline in Greater China.
During the same period, iPhone shipments in China fell 9% YoY, making Apple the only top-five vendor to see a decline, according to an IDC report released last month.
In contrast, Xiaomi's shipments soared 39.9%, and Huawei's rose 10%.
Meanwhile, iPhone sales dropped 7.7% YoY in Q1, while Huawei's handset sales climbed 28.5%, according to a report from market research firm Counterpoint.
Remedies
iPhone 17 series could help slow the ongoing sales decline
Despite numerous challenges, deep discounts during China's mid-year 618 shopping festival, the biggest retail event after November's Singles' Day, could provide a boost to iPhone sales, according to IDC.
Additionally, the upcoming launch of the iPhone 17 series in September, expected to bring major hardware upgrades, may help curb further declines in the Chinese market.