Apple’s China sales plunge 50% as Huawei surges, tariffs bite and India gains ground

Apple Inc.’s hold over the valuable Chinese market could be weakening fast, new data from a China-linked think tank shows.

As per data from the China Academy of Information and Communications Technology, reported by Reuters first, iPhone shipments to China have plummeted by a whopping 50% in March 2025. According to the think tank’s data, Apple’s shipments sank to 1.89 million units, down from 3.75 million one year ago—a 49.6% drop that underscores the mounting challenges for foreign brands in the world’s largest smartphone market.

The data showed that foreign-branded smartphones now account for just 8% of total shipments, halving from 16% a year ago, as Chinese players—led by a resurgent Huawei—consolidate market share. Huawei reclaimed the No. 1 position with a 19.4% share in the first quarter, followed by Vivo, Xiaomi and Oppo. Apple slipped to fifth place, now holding just 14.1% of the market.

The iPhone maker is besotted with challenges on multiple fronts: the rapid rebound of Huawei, boosted by its proprietary Kirin chips and HarmonyOS Next platform; sluggish implementation of generative AI features; and a domestic industrial policy that favours homegrown brands.

A government-backed 15% rebate on sub-6,000 yuan ($820) devices has further tilted the playing field. Apple’s base-model iPhone 16, priced at 5,999 yuan, is just expensive enough to miss the cut.

With the critical 618 shopping festival approaching in China, known to be the second-largest and, perhaps, the most important shopping festival in the country, Apple has begun cutting prices on its iPhone 16 Pro line in an attempt to revive demand. CEO Tim Cook, during a recent earnings call, even acknowledged the existence of “persistent headwinds” in Greater China, where revenue fell 2% in the March quarter—an improvement from the 11% year-on-year drop over the holiday period, but still a troubling sign.

As domestic competition intensifies, Apple is also preparing to raise prices globally on its next iPhone lineup, expected this September, according to a Wall Street Journal report.

Although Apple could position the hike in prices to new innovations, experts argue that rising U.S. tariffs on Chinese products could be the driving factor.

However, with China dwindling in Apple’s scheme of things, India, on the other hand, has begun to acquire a pride of place, with the company shifting its iPhone production here, as part of its broader efforts to diversify its supply chain and bypass geopolitical uncertainties tied to China.