To say that Apple has been struggling in the Chinese market is an understatement. Including the most recent fiscal quarter, in which the company reported a 2% year-over-year revenue drop in the country, Apple has seen its numbers stay in the green for only three of the last twelve fiscal quarters. That includes an 11% drop in Q1 2025 and a whopping 13% drop in Q1 2024.
When it comes to the smartphone market, however, Apple isn’t the only non-Chinese company that’s been having it rough.
Government subsidy programs might be the reason
According to a recent report (via Reuters) released by the government-affiliated China Academy of Information and Communications Technology, non-Chinese mobile brands saw a 49.6% drop in shipments compared to March 2024. In absolute numbers, shipments fell from 3.7 million to 1.8 million units.
The CAICT had released a similar report last March, covering January shipments. It noted a 21% drop in foreign-branded smartphone shipments, to 4.3 million units, compared to 5.5 million units year over year.
One possible explanation for the steep decline is China’s nationwide smartphone subsidy program, which kicked into gear last January and covers smartphone models priced below CNY 6,000 (approximately US$832).
While that price point excludes most of the current iPhone lineup, it significantly benefits local brands that offer arguably comparable hardware at much lower prices.
Earlier this year, Counterpoint Research reported that the program drove a 2.5% year-on-year increase in smartphone sales, with Chinese brands like Huawei seeing a 28.5% jump, while Apple fell 7.7%.
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