Sales of foreign-branded smartphones in China fell sharply in May 2025, with shipments dropping 9.7% year-over-year, according to data from the China Academy of Information and Communications Technology (CAICT). The total number of foreign phone units shipped was 4.54 million—down significantly from the same period last year.

Apple, the dominant foreign player in China’s smartphone market, was a major factor in the overall decline. Facing intensifying competition from domestic brands such as Huawei and Xiaomi, Apple responded with aggressive discounting strategies for its iPhone 16. On some e-commerce platforms, discounts reached as high as 2,530 yuan (about $351).

Despite these price cuts, consumer interest appears to be shifting further toward local brands, many of which have made significant technological advances and gained strong nationalistic support.

In a broader trend, overall mobile phone shipments in China fell 21.8% year-on-year, totaling just 23.72 million units in May. This indicates that both domestic and foreign brands are feeling the squeeze amid economic uncertainty, market saturation, and shifting consumer behavior.

The latest figures point to an increasingly challenging environment for foreign smartphone makers in China—once one of their most lucrative markets. Companies like Apple may have to rethink their long-term strategies to stay relevant in the face of rising domestic competition and evolving consumer expectations.