Foreign smartphone shipments in China drop by 50% due to subsidy programme

According to a recent report by the China Academy of Information and Communication Technology (CAICT), in March 2025, shipments of foreign-branded phones in China fell sharply by 49.6% compared to March 2024.

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The number of shipments dropped from 3.7 million units to just 1.8 million, indicating serious difficulties for international smartphone manufacturers in the Chinese market.

This decline is part of Apple's ongoing problems in China. For example, the company recorded an 11% drop in revenues in the first quarter of 2025 and a 13% drop in the first quarter of 2024, which has been going on for several financial periods in a row. However, Apple is not the only brand experiencing a downturn. Other foreign companies are also facing a decline in demand.

One of the reasons for this significant drop is the national smartphone subsidy programme that was introduced in China in January 2025. The programme covers models costing less than RMB 6,000 (approximately USD 832), which excludes most premium foreign models, including most iPhones. At the same time, it is beneficial for local brands such as Huawei, which can offer comparable features at much lower prices.

The subsidy programme contributed to a 2.5% year-on-year increase in smartphone sales. Local brands, including Huawei, recorded a 28.5% increase in shipments, while Apple posted a 7.7% decline over the same period. This highlights the difficulties faced by foreign manufacturers amid strong competition from local companies and government support for the latter.

Source: Reuters