Apple Loses Market Share in China as Xiaomi Surges Ahead

Apple has experienced a setback in the Chinese smartphone market during the first quarter of 2025, even as overall industry shipments in the region rose by 3.3% year-over-year, according to IDC.

The latest figures show Apple losing ground in the world’s largest smartphone market amid intensifying price competition, growing US-China trade tensions, and increased government support for local brands.

In Q1 2025, smartphone shipments in China reached 71.6 million units, outperforming the global smartphone market’s modest 1.5% growth. The uptick was primarily driven by government subsidies introduced in January that temporarily lowered device costs, coinciding with peak demand during the Spring Festival. However, the subsidies had a limited impact on boosting high-end purchases—an area dominated by Apple.

According to IDC analysts, Apple’s premium pricing strategy made its iPhones less competitive in a market increasingly favoring value-driven brands. As a result, Apple lost market share to rivals like Xiaomi, which surged back to the number one spot for the first time in nearly a decade.

The subsidy program aimed at stimulating smartphone purchases in early 2025 helped lower the upfront cost of many devices. But Apple’s flagship iPhones, with starting prices far above the average, were not positioned to benefit in the same way as mid-range offerings from domestic competitors like Xiaomi, Vivo, and Honor.

IDC’s Will Wong emphasized that Apple’s pricing structure limited its ability to tap into the government-backed momentum.

Meanwhile, the Chinese smartphone market posted its sixth straight quarter of growth, indicating recovery and resilience in the face of broader economic uncertainty. Yet, IDC analysts cautioned that the future outlook remains cloudy.

Looking ahead, escalating US-China trade tensions present a potential risk to Apple’s supply chain and market competitiveness.