Data published by a government-affiliated research firm shows that sales of foreign-branded mobile phones, including those made by Apple Inc., in China decreased 9.7 percent year over year in May.
Foreign-branded phone shipments in China in May decreased to 4.54 million units compared to the same month the previous year, according to calculations based on statistics from the China Academy of Information and Communications Technology (CAICT).
The performance of Apple, the biggest foreign mobile phone manufacturer in China's smartphone-dominated industry, has a big impact on the country's overall statistics on sales of foreign-branded phones.
Apple has lowered pricing to remain competitive in the face of heightened competition from domestic rivals.
In May, Apple's newest iPhone 16 models were discounted by much to 2,530 yuan ($351) on Chinese e-commerce sites.
According to the report, phone shipments within China decreased 21.8 percent year over year to 23.72 million units for the month.
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Apple has aggressively reduced prices in an attempt to slow the loss. The company reduced the price of the iPhone 16 Pro (128GB) by up to 2,530 yuan ($351) during May's "618" mid-year shopping festival, bringing it down to 5,469 yuan on JD.com.
Given this decrease, some iPhones fell below the 6,000 yuan barrier, qualifying them for a 500 yuan government subsidy.
Apple's first-quarter sales were momentarily aided by this government incentive, which was a component of China's statewide smartphone upgrading program that was started in early 2025. However, the surge had faded off by May.
CAICT has not disclosed brand-specific figures, but there’s little ambiguity about the trend. Apple is losing ground, and fast. Discounts may win short-term sales, but they won’t fix the core issue, Apple is no longer ahead of the curve in China.
Although experts say it would be nearly impossible, U.S. President Donald Trump has threatened Apple with taxes and encouraged CEO Tim Cook to manufacture iPhones in the US. Since Huawei, whose smartphone industry was severely damaged by U.S. sanctions, returned in late 2023 with a new phone that featured a more sophisticated technology that many believed would be challenging for China to build, China has also been an issue for Apple.
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Since that time, Huawei has actively introduced gadgets in China and has even started to reenter other markets. In China, the Chinese IT behemoth has been successful in reducing Apple's market dominance.