Foreign Phone Sales in China Drop Nearly 10% in May Amid Rising Local Competition

Sales of foreign-branded smartphones in China, including those from Apple Inc., fell 9.7% year-on-year in May, according to data released on Friday by the China Academy of Information and Communications Technology (CAICT).

Total shipments of non-Chinese brands dropped to 4.54 million units in May, compared to the same month in 2023. Although CAICT did not provide a breakdown by company, Apple’s dominant share among foreign players means its performance heavily influenced the overall decline.

The data highlights the intensifying competition foreign manufacturers face from domestic brands like Huawei, Xiaomi, and Honor. Apple has been particularly impacted, prompting the tech giant to implement aggressive pricing strategies, including discounts of up to 2,530 yuan ($351) on iPhone 16 models through Chinese e-commerce platforms.

Meanwhile, the broader Chinese phone market also saw a significant contraction. Total smartphone shipments in the country fell 21.8% year-on-year, with 23.72 million units sold in May.

Analysts say the data reflect both weak consumer demand and a growing shift toward homegrown technology, amid rising geopolitical and market pressures.