Apple's Smartphone Shipments in China Decline by 9% in Q1 Amid Trade Tensions
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Synopsis
In Q1 2025, Apple's smartphone shipments in China fell by 9%, reaching 9.8 million units, according to IDC. This is the company's seventh consecutive quarter of decline in the region, as trade tensions with the US affect market dynamics.
Key Takeaways
- Apple's shipments in China dropped by 9% in Q1 2025.
- Xiaomi saw a 40% increase in shipments.
- Apple's market share declined to 13.7%.
- US-China trade tensions are impacting Apple's performance.
- Apple is shifting focus to India for manufacturing.
New Delhi, April 18 (NationPress) Apple's smartphone shipments in China saw a 9% decrease in the first quarter of 2025, totaling 9.8 million iPhones, a decline from over 10.7 million units the previous year, based on the latest findings from global market research firm IDC.
The tech giant was the sole major smartphone vendor to experience a drop in shipment numbers during this timeframe, underscoring its increasing challenges in the world's largest smartphone market.
Apple's market share has dropped to 13.7%, a significant fall from 17.4% in the prior quarter. This represents the seventh consecutive quarter of downturn for the US tech company in China.
Conversely, Chinese smartphone leader Xiaomi experienced an impressive 40% surge in shipments, achieving 13.3 million units.
Overall, the Chinese smartphone sector expanded by 3.3% during the quarter, partially driven by new government subsidies introduced in January.
Will Wong, senior research manager for Client Devices at IDC Asia/Pacific, noted that the ongoing US-China tensions have compounded the challenges.
"The US-China tensions have generated concerning news, but a positive aspect is that the growth in the first quarter positioned market players more favorably to tackle any hurdles for the remainder of the year," stated Wong.
As Apple faces difficulties in China, the company is reportedly redirecting its focus towards India as a manufacturing and export hub.
A recent report from The Wall Street Journal indicated that Apple is considering boosting iPhone exports from India to the US.
This strategy aims to evade hefty tariffs imposed by the US on Chinese imports, which now reach up to 245%.
In comparison, India only incurs a 26% US tariff, making it a more economically viable option.
Meanwhile, Apple India reported a 60% increase in iPhone production from its local supply chain in the financial year ending March 31, 2025, achieving a turnover of nearly Rs 1.89 lakh crore, according to industry data released last week.
Out of this total, iPhones valued at Rs 1.5 lakh crore were exported from India during the 2024-25 fiscal year, as stated by Union Minister for Electronics and Information Technology, Ashwini Vaishnaw.
