"Apple’s China Smartphone Shipments Drop 9% in Q1 2024 Amid Rising Trade Tensions: What’s Next?"
smartphone market share
"Apple’s smartphone shipments in China fell 9% in Q1 2024 as US-China trade tensions escalate. Discover the reasons, market trends, and what this means for Apple’s future. Read now!"
According to a recent report by The Wall Street Journal, Apple is exploring the possibility of increasing iPhone exports from India to the US. This move is aimed at avoiding heavy tariffs imposed by the US on Chinese imports, which now stand at up to 245 per cent.
India, by comparison, faces only a 26 per cent US tariff, making it a more cost-effective alternative. Meanwhile, Apple India saw a 60 per cent surge in iPhone production from its local supply chain in the financial year ending March 31, 2025, reaching a turnover of nearly Rs 1.89 lakh crore, according to industry data last week.
Out of this total, iPhones worth Rs 1.5 lakh crore were exported from India during 2024-25, according to Union Minister for Electronics and Information Technology, Ashwini Vaishnaw.
Hook: “Apple, once the undisputed leader in China’s premium smartphone market, faces a 9% YoY shipment drop in Q1 2024—its steepest decline in 5 years.”
Context: Briefly mention rising US-China trade tensions and how tech giants like Apple are caught in the crossfire.
2. Breaking Down the Numbers (Data-Driven Section)
Statistic Highlight:
“According to IDC, Apple shipped just 10.3 million iPhones in China in Q1 2024, down from 11.3 million in Q1 2023.”
Compare with competitors: “Huawei surged 64% in the same period, reclaiming its spot as China’s #2 smartphone brand.”
Visual Element Suggestion: Embed a chart comparing Apple, Huawei, Xiaomi, and Vivo’s Q1 2024 shipments.
3. Why Is Apple Struggling in China? (Problem Analysis)
Factor 1: Trade Tensions & Policy Shifts
US restrictions on chip exports to China.
China’s “Buy Local” campaigns targeting state employees and enterprises.
Factor 2: Rising Competition
Huawei’s Mate 60 Pro (with China-made 7nm Kirin chip) dominating premium segments.
Xiaomi and Honor’s aggressive pricing in mid-range markets.
Factor 3: Economic Headwinds
Slow post-COVID recovery impacting consumer spending on premium devices.
4. How Trade Tensions Are Reshaping China’s Smartphone Market
Highlight China’s push for semiconductor self-reliance.
Discuss Apple’s supply chain diversification (e.g., moving production to India).
Mention tariffs and export controls disrupting Apple’s China operations.
5. What’s Next for Apple in China? (Future Outlook)
Predictions:
Continued pressure unless trade relations improve.
Apple’s bet on AI-powered features in iOS 18 to reignite demand.
Potential price cuts or trade-in programs to retain customers.
Its market share fell to 13.7 per cent, down sharply from 17.4 per cent in the previous quarter. This marks the seventh consecutive quarter of decline for the US tech giant in China. In contrast, Chinese smartphone leader Xiaomi saw a sharp 40 per cent rise in shipments, reaching 13.3 million units.
Overall, the Chinese smartphone market grew 3.3 per cent during the quarter, driven in part by new government subsidies introduced in January. Will Wong, senior research manager for Client Devices at IDC Asia/Pacific, said that the ongoing US-China tensions have added to the challenges.
“The US-China tensions have fuelled unsettling news, but the silver lining is that the first quarter’s growth gave market players a better position to deal with any challenges in the rest of the year,” said Wong. As Apple struggles in China, the company is reportedly shifting more focus toward India as a manufacturing and export hub.
