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Sales of smartphones made by foreign brands, including Apple, declined by 9.7% compared to last year in May, as shared by China Academy of Information and Communications Technology (CAICT). The data indicates a stark drop from April 2024, with only 4.54 million foreign brand smartphones shipped.

Apple’s Influence on the Decline

Apple holds the title of the foreign smartphone brand that sells the most in China; therefore, he sales of other foreign smartphone brands hinge on its performance. While CAICT didn’t specify individual brand shipments, we can safely assume that Apple was facing some form of decline based on the overall data. To keep up with Huawei, Xiaomi, and Honour, who are domestically popular, Apple has been trying to maintain its market share by offering steep discounts of up to ¥2,530, which is around $351, on iPhone 16s on e-commerce sites.

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Key Data Points

  • Foreign-branded phone shipments: 9.7% YoY decline to 4.54 million units
  • Total mobile phone shipments in China: 21.8% YoY decline to 23.72 million units

Rising Pressure from Local Brands

The information shows how big of a problem foreign phone manufacturers have within China’s smartphone ecosystem, where local branded manufacturers now have the upperhand in terms of innovation, pricing, and patriotism. It is Apple, in particular, that is suffering the most from this shift because of Huawei’s comeback and government support for local brands shifting consumer spending.

If this carries on, Apple and other foreign players might have to double down on localization strategy, ramp up advertising, or have to entirely reposition their strategy for Chinis in order to stay relevant. With China’s overall handset sales also declining by 21.8%, there is intense competition everywhere, and being quick to adapt may be the key to survival.