Apple’s grip on China’s smartphone market is loosening. The reason? Homegrown brands like Huawei are gaining traction fast. According to research firm IDC, iPhone sales in China are expected to drop 1.9% in 2025.
What’s behind the decline?
One major factor is the Chinese government’s decision to exclude most iPhone models from a subsidy program for electronic devices priced under 6000 yuan (around 734 euros). This move has made iPhones less competitive in the market.
Meanwhile, overall smartphone sales in China are expected to grow 3% this year. Government subsidies have boosted demand for Android devices. Huawei, in particular, is doing well. Its sales rose 10% in the first quarter of this year. Xiaomi’s sales soared 39.9%.
A key weakness for Apple
Apple’s delay in launching its AI-powered service in China may be hurting its chances. While Chinese rivals have already introduced AI features in their devices, Apple is still waiting for regulatory approval. This lag could cost Apple dearly in the competitive Chinese market. As the South China Morning Post notes, Apple’s struggles in China are nothing new. The company has faced tough times in the country for years.
The IDC’s report from May shows that iPhone sales in China fell 9% in the first quarter, making Apple the only top-five vendor to experience a decline. In contrast, Huawei and Xiaomi are on the rise. Their sales increase is a testament to the growing strength of Chinese smartphone brands.
As the Chinese market continues to evolve, Apple will need to adapt quickly to stay competitive. With its delayed AI launch and exclusion from government subsidies, the company faces an uphill battle. Can Apple regain its footing in China, or will homegrown brands like Huawei continue to dominate? Only time will tell.