Apple Sees Decline in Smartphone Shipments in China

By Che Pan and Brenda Goh
BEIJING (Reuters) – Apple’s shipments of smartphones in China fell 9% in Q1 compared to the previous year, making it the only major manufacturer with a decline, according to IDC data.

Apple (NASDAQ:AAPL), now fifth in China’s smartphone market, shipped 9.8 million phones, translating to a 13.7% market share, down from 17.4% in the prior quarter. This marks Apple’s seventh consecutive quarter of decline.

In contrast, market leader Xiaomi (OTC:XIACF) experienced a 40% shipment increase, reaching 13.3 million units, while overall industry shipments rose by 3.3%.

IDC analyst Will Wong noted that Apple’s premium pricing strategy hindered the company from benefiting from new government subsidies launched in January, which stimulated growth in the first quarter. These subsidies for smartphones and other consumer electronics refund consumers 15% on products priced under 6,000 yuan ($820).

($1 = 7.2931 Chinese yuan)