Apple iPhone Sales in China Drop 19% in Q1 2025 as Huawei Gains Ground
In Q1 2025, Apple’s iPhone sales in China, its largest overseas market, declined by 19% year-over-year amid rising competition from Huawei and regulatory challenges.
Key Insights
- Apple’s iPhone sales in China decreased by 19% year-over-year during the first quarter of 2024.
- The company’s market share slipped from first to third place, now closely competing with Huawei, while the overall smartphone market grew by 1.5%.
- Apple faces hurdles due to restrictions on foreign devices in state-owned enterprises and Huawei’s launch of phones equipped with cutting-edge microchips.
According to Counterpoint Research, Apple’s iPhone sales in China—the company’s biggest international market—fell sharply in Q1 2024 compared to the previous year. Despite the overall market’s modest growth of 1.5%, Apple’s market share dropped significantly, placing it behind competitors like Huawei.
Challenges for Apple include a government ban on foreign smartphones within state-backed organizations and Huawei’s release of new devices featuring the latest microchip technology, even under U.S. sanctions limiting access to advanced chips.
This decline in China, combined with Apple’s limited AI advancements, has weighed on the company’s stock performance in 2024. However, analysts remain optimistic due to strong pent-up demand for iPhones, growth in App Store revenues, and anticipated AI product announcements scheduled for June.
Adding to potential growth, Apple plans to launch its Vision Pro mixed reality headset in China later this year. This innovative device marks Apple’s first major new technology venture in several years, following its U.S. debut earlier in 2024.
Previously, Apple led the Chinese smartphone market, holding a 19.7% share in Q1 2023 according to IDC, but this has now dropped to 15.7% per Counterpoint’s latest data. Despite a 14% drop in Apple’s stock year-to-date, shares have remained relatively stable recently.
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