China Mobile Shipments Drop 22% Foreign Phone Sales Fall 10% in May

In May 2025, foreign-branded mobile phone sales in China, including Apple's, declined by 9.7% year-on-year, with shipments dropping to 4.54 million units amid a broader 21.8% fall in the overall Chinese mobile phone market. Apple, the largest foreign smartphone brand in China, has experienced a significant loss in market share to domestic competitors like Huawei, Xiaomi, Oppo, and Vivo, who offer more innovative AI features, foldable designs, and competitive pricing. Despite Apple's aggressive price cuts, including discounts up to 2,530 yuan on the iPhone 16 during the mid-year shopping festival, and government subsidies, the company’s sales momentum has weakened, partly due to regulatory restrictions that delayed its AI rollout in China. Chinese consumers are also extending their smartphone replacement cycles, further dampening demand, while nationalist preferences and local innovation have shifted buyer loyalty toward domestic brands. Industry analysts note this market contraction mirrors similar downturns in 2017 and 2018, suggesting a cyclical consolidation phase rather than a complete market collapse. Overall, the combination of intensified local competition, longer device lifecycles, and changing consumer preferences continues to challenge foreign smartphone makers in China.