Sales of foreign-branded smartphones in China declined 9.7% year-on-year in May 2025, according to new data from the China Academy of Information and Communications Technology (CAICT). The report underscores growing challenges for international mobile phone makers, including Apple, in the world’s largest smartphone market.
Foreign-Branded Smartphone Shipments Drop to 4.54 Million Units
Based on the CAICT data, shipments of foreign smartphones in China fell to 4.54 million units in May 2025, down from the same month last year. While specific figures for Apple’s sales were not disclosed, the iPhone maker is widely seen as the largest foreign player in China’s smartphone sector, meaning its performance significantly impacts the overall trend.
Apple Faces Rising Pressure from Chinese Brands
Apple’s declining market share comes amid intensified competition from domestic smartphone makers such as Huawei, Xiaomi, and Honour. These companies have ramped up innovation and marketing efforts to gain an edge over foreign brands.
In May, Apple responded to slowing demand by offering steep discounts of up to ¥2,530 ($351) on its latest iPhone 16 models through Chinese e-commerce platforms. The company’s price cuts reflect a broader strategy to defend its position in a saturated and increasingly nationalistic market.
Overall Smartphone Shipments in China Drop 21.8%
The CAICT report also revealed a sharp 21.8% year-on-year decline in total mobile phone shipments within China in May, falling to 23.72 million handsets. This highlights a broader slowdown in consumer demand, affecting both domestic and international manufacturers.
Apple’s China Outlook Remains Uncertain
While Apple continues to be a top-tier brand in China, the latest data signals a challenging road ahead as local competitors close the innovation gap and national sentiment favours domestic products. With China’s smartphone shipments falling overall, foreign phone brands may need to adjust pricing, features, and localisation strategies to maintain relevance in the market.
Conclusion
The 9.7% drop in sales of foreign smartphones in China, coupled with a 21.8% decline in total mobile phone shipments, signals mounting pressure on global tech giants such as Apple. As Chinese smartphone makers rise in both technology and consumer preference, foreign brands must rethink their approach to compete effectively in a shrinking market.
