Market Share in China Declines for Seven Consecutive Quarters
Apple Struggles with Sluggish Performance
Apple has increased its trade-in discount benefits for iPhones in China. The company continues to see its market share decline in the Chinese smartphone market.
On May 23, Yonhap News, citing China Securities Journal and Maeil Business Newspaper, reported that Apple announced on its official Chinese website that it will offer additional discounts for customers who trade in their old iPhones and purchase a new model from today until June 18. The additional discount for this promotion ranges from 50 to 400 yuan (approximately 9,500 to 76,000 won).
If a customer trades in an iPhone model released after the iPhone 12 and purchases a new iPhone, they can receive a discount ranging from 1,000 yuan (approximately 190,000 won) up to 5,700 yuan (approximately 1,080,000 won). A total of 24 models are eligible for the trade-in program. The maximum deduction amount for the iPhone SE (3rd generation), as well as the iPhone 12 and later models, has increased compared to previous offers.
This policy comes as Apple is struggling with sluggish sales and declining market share in China. According to market research firm IDC, smartphone shipments in China increased by 3.3% year-on-year in the first quarter of this year, but iPhone shipments in China fell by 9% to 9.8 million units.
Shipments from Xiaomi, the top-ranked company, rose by 40% to 13.3 million units. Apple ranked fifth in market share in China and was the only major smartphone manufacturer to see a decline in shipments in the first quarter.
China Securities Journal also noted that Apple's additional trade-in discount began the day after Xiaomi announced new products, including its independently developed mobile chip.
Apple Offers Additional Discount for iPhone Trade-In in China. Screenshot of iPhone China Website Photo by Yonhap News
Previously, Xiaomi CEO Lei Jun revealed at his company's new product launch event that they were targeting Apple by unveiling their own mobile chip. At the Xiaomi 15th Anniversary Strategic New Product Launch, the company introduced its self-developed mobile system-on-chip (SoC), 'XuanjieO1' (玄戒O1·XringO1). He stated, "We are targeting the iPhone in order to make the best smartphone," and added, "In that case, our chip should also be comparable to Apple's."
Meanwhile, as one of Apple's key partners is pushing to build a factory in India, Apple is accelerating the expansion of its supply chain in the country. This move to establish a factory in India also demonstrates a shift in focus away from China-centric manufacturing toward India.
This investment comes as U.S. President Donald Trump has called for Apple to move its manufacturing operations back to the United States. Previously, President Trump pressured Apple to return manufacturing to the U.S. amid trade friction with China, and recently stated, "I've tolerated Apple building factories in China for a long time," adding, "I do not want them to build factories in India."
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