Apple is losing its ground in China’s smartphone market. According to a Reuters report, the smartphone’s shipments in China dropped by 9% when compared to the same period last year. The report suggested that Apple is the only major brand to have seen a major drop amid the ongoing trade war between China and the US. Apple shipments have dropped to 9.8 million units and its market share shrank to 13.7%, down from 17.4% in the previous quarter. This marks the seventh quarter in a row that Apple’s shipments have declined.
While Apple stumbled, domestic powerhouses like Xiaomi and Huawei took center stage. Xiaomi led the market with a 40% jump in shipments, hitting 13.3 million units, while overall smartphone shipments in China rose by 3.3%. This shift highlights how Chinese consumers are gravitating towards homegrown brands amid the escalating trade war with the US.
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IDC (International Data Corporation) analyst Will Wong told Reuters that Apple’s premium pricing strategy has cost the brand valuable market momentum. The report suggested that one of the major reasons behind Apple’s decline is its failure to capitalize on new government subsidies introduced in January. The initiative offers a 15% rebate on consumer electronics priced under 6,000 yuan ($820), but most iPhones fall well above that threshold—making Apple ineligible.
Apple’s rapid drop in market share—from 17.4% to 13.7% in just one quarter—suggests that brand prestige alone is no longer enough to stay ahead. National pride, local preferences, and supportive government policies are increasingly influencing consumer choices.
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If Apple hopes to remain competitive in this evolving landscape, it may need to rethink its rigid global pricing strategy. Tailored, localised approaches—like offering region-specific models or expanding its range to include more affordable options—could be the key to winning back Chinese hearts and wallets.
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