Apple Losing Ground in China: Falling Sales, Fierce Competition, and Tariff Threats Amid Share Price Slump

Introduction
Apple is under growing pressure in the Chinese market—not only due to fierce competition from Xiaomi and Huawei, but also as a result of weakening sales figures, a shrinking market share, uncertainty around its supply chain, and ongoing regulatory battles. At the same time, Apple’s stock has posted seven consecutive days of declines—a signal that investor anxiety is running high.

Trade-In Increases: A Symbolic Move in Response to Slowing Demand
Last Friday, Apple increased the trade-in values for iPhones in China: for example, the maximum trade-in for the iPhone 15 Pro Max rose to 5,700 yuan (about $791), up from 5,625 yuan previously. The iPhone 15 Pro trade-in value rose to 4,750 yuan. For reference, a brand-new iPhone 15 Pro Max sells for 7,999 yuan in China—meaning that, at best, a customer can get about a 70% discount off the full price when trading in. While these increases are relatively minor, they add to a series of discounts and incentives Apple has been offering—especially around holidays—to try to stem declining demand.

Sales Data: Persistent Decline, Shrinking Market Share
In Q1 2025, Apple’s shipments to China fell by 8% year-over-year, according to Canalys. Its market share dropped from 15% to 13%. Sales for the broader “Greater China” region (including Hong Kong and Taiwan) also declined. This represents a sharp reversal, especially as Xiaomi and Huawei are posting double-digit growth in their home market.

Competition at a Peak: Xiaomi Surges, Huawei Rebounds
Apple’s Chinese competitors are not just targeting the mass market—Xiaomi this week launched the Xiaomi 15S Pro, featuring an in-house developed chip, a major technological leap that puts it in direct competition with Apple in the premium segment. Xiaomi has also pledged nearly $7 billion to chip development over the next decade, signaling its intent to compete with Apple and Huawei at the highest level.

Meanwhile, Huawei, thought to be hampered by U.S. restrictions, is making a strong comeback thanks to breakthroughs in chip technology and aggressive product launches.

Supply Chain and Tariff Risks
Roughly 90% of iPhones are made in China, mostly through Foxconn. Apple is trying to shift some production to India, but faces both political pressure from the U.S. (President Trump recently voiced opposition to the move, favoring U.S. manufacturing) and the threat of new tariffs on Chinese electronics and chips.

While Trump has temporarily postponed most consumer tariffs on Chinese goods, the debate about future tariffs remains a source of worry for Apple—especially regarding supply chain resilience and future costs.

Seven-Day Share Price Drop: A Warning Signal
Apple stock has dropped for seven straight trading sessions—an unusual move for a company of its stature. The market is reacting not just to sales data and weakness in China, but also to concerns about future profitability if these trends persist and tariffs return.

Conclusion
Apple is facing intense competitive pressure in China, along with regulatory uncertainty and eroding market share. The data from April–May 2025 highlight a double challenge: maintaining technological leadership and brand prestige on one hand, and defending profitability on the other. Trade-in incentives and discounts may provide some breathing room, but could prove only a temporary fix. Investors will continue to watch closely to see if Apple can reverse the trend—or if it risks being sidelined in the world’s most important smartphone market.