Key Points
- Sales of foreign-branded phones in China declined by 9.7% in May compared to the same month last year.
- This decline is seen as a reflection of Apple’s performance, as it’s the largest foreign phone seller.
- Apple is facing intense competition from local Chinese rivals. To compete, Apple has been offering significant discounts on its latest iPhone models.
- The entire Chinese smartphone market is struggling, with overall sales down by nearly 22%.
Sales of foreign phones in China, led by Apple, declined again in May, down 9.7% compared to the same period last year. According to new data from a Chinese government research group, this means only 4.54 million foreign-branded phones were shipped during the month.
The drop highlights the tough competition Apple is facing from popular domestic rivals in China. To keep up, the company has been forced to slash prices. In May, for example, online stores offered deep discounts of up to $351 on the latest iPhone 16 models to try and lure in customers.
It’s not just foreign brands that are struggling. The entire Chinese smartphone market saw a significant decline in May, with total phone shipments falling by nearly 22% year-on-year. This suggests a broader slowdown in consumer spending on new devices nationwide, affecting all market players.
While the government data doesn’t name Apple specifically, the company makes up the vast majority of foreign phone sales in China, so the figures are seen as a direct reflection of its performance in one of its most important markets.
