Apple’s iPhone shipments in mainland China fell 9 per cent from a year ago to 9.8 million units in the first quarter, according to research firm IDC, three months after the US tech giant recaptured the top spot in the world’s largest smartphone market.
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That made Apple the only top-five-ranked handset vendor in China to record a decline last quarter, when domestic smartphone shipments grew 3.3 per cent year on year to 71.6 million units, IDC data showed.
Apple, which is still awaiting Beijing’s approval to offer artificial-intelligence features on its iPhones in China, stumbled because “its premium-pricing structure prevented it from capitalising” on the government subsidy scheme for electronics purchases, according to IDC Asia-Pacific senior research manager Will Wong.
The scheme, which began on January 20, gives consumers a 15 per cent subsidy – capped at 500 yuan (US$68.50) per purchase – for buying smartphones, tablets and smartwatches that cost under 6,000 yuan.
Still, Apple’s manufacturing supply chain and China’s smartphone industry face much uncertainty because of US President Donald Trump’s new tariff regime, which kicked off this month.
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The Trump administration imposed cumulative tariffs of 145 per cent on Chinese goods this month, while Beijing slapped a 125 per cent tariff on US goods. China faces up to a 245 per cent levy on exports to the US.