Apple's China Market Collapse: Nearly 50% Year-over-Year Drop

Apple's iPhone shipments in China plummeted nearly 50% year-over-year in March 2025, reaching a mere 1.89 million units. Domestic brands now control 92% of the market, leaving Apple with around 8% and fifth place. Huawei's resurgence, fueled by its own chips and HarmonyOS Next, has led the charge. A Chinese government subsidy program, offering a 15% refund on electronics under 6,000 yuan ($820), also hurts Apple, as the iPhone 16 starts just above that threshold. To combat the decline, Apple is reportedly cutting prices on some iPhone 16 Pro models ahead of the "618" shopping festival. Apple CEO Tim Cook acknowledged the revenue drop from Greater China, while analysts point to Apple's slower adoption of generative AI as another factor.