Apple faced continuing challenges in China's smartphone market as iPhone shipments dropped 9% in the first quarter of 2024, making it the only major vendor to see declining sales in the region.
According to research firm IDC, Apple delivered 9.8 million iPhones in China during Q1, resulting in a market share of 13.7% - down from 17.4% in the previous quarter. This marks Apple's seventh consecutive quarter of declining shipments in the Chinese market.
In contrast, domestic smartphone makers flourished. Market leader Xiaomi recorded a robust 40% increase in shipments, reaching 13.3 million units. The overall smartphone market in China grew by 3.3% during this period.
IDC analysts point to Apple's premium pricing strategy as a key factor behind the decline. While the Chinese government introduced new consumer electronics subsidies offering 15% refunds on products priced under 6,000 yuan ($820), Apple's standard iPhone 16 is priced at 5,999 yuan - just barely qualifying for the program.
The pricing structure limited Apple's ability to capitalize on these government incentives that helped drive market growth in the first quarter. Meanwhile, Chinese manufacturers appeared better positioned to take advantage of the subsidy program with their more competitive pricing models.
This latest data highlights the growing competitive pressures Apple faces in China's smartphone market, particularly from domestic brands that continue to gain market share with aggressive pricing and marketing strategies. Apple's grip on the global smartphone market is showing signs of weakening as Chinese manufacturers gain ground. The tech giant's market share dropped to 18% in 2024, down from 19% in the previous year, according to new data from Counterpoint Research.