Gate News message, April 17 — Apple’s iPhone shipments in China rose 20% year-on-year in the first quarter, the fastest growth among major vendors, according to Counterpoint Research, even as overall smartphone shipments in the market fell 4%.
China’s government subsidy program, which launched on January 20, 2025, has provided significant support for the smartphone market. The initiative offers a 15% discount on phones priced under 6,000 yuan (approximately $880), capped at 500 yuan ($73) per device. As of March, more than 42 million consumers had applied for the subsidies, generating 67 billion yuan ($9.82 billion) in sales. Apple CEO Tim Cook noted the subsidies “had some effect” on Greater China performance, calling it “the first full quarter of the subsidies playing out.”
Huawei maintained the top position with a 20% market share and 2% shipment growth, while Apple ranked second with 19%. Xiaomi, Oppo, and Honor experienced shipment declines, while Vivo saw slight growth. Counterpoint attributed market headwinds to rising memory chip prices, which increased handset production costs and prompted some vendors to raise budget phone prices, alongside supply chain disruptions.
Counterpoint noted that Apple’s superior supply chain control allows it to absorb higher memory costs more effectively than competitors, making it less likely to raise prices. Meanwhile, Oppo and Vivo have raised prices on some models as memory costs climb. Huawei may gain an advantage in the low-to-mid-range segment through partnerships with domestic memory chip suppliers that typically charge less than international manufacturers.
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