Business

Xiaomi displaces Apple from the top spot – Subsidies fuel demand for affordable smartphones in China

Apple's market share in China falls to 13.7% – local brands benefit from Beijing's consumer incentives.

Eulerpool News Apr 20, 2025, 2:19 PM

Apple lost the top spot in the smartphone market in China to Xiaomi in the first quarter of 2025. According to preliminary figures from market research firm IDC, the US company fell back to fifth place with a market share of 13.7% – down from 15.6% in the same period last year. iPhone sales fell by 9% to 9.8 million units.

Xiaomi took the top spot with a sales increase of nearly 40% to 13.1 million units. The growth was driven by Beijing's subsidy policy, which has been specifically promoting affordable electronic products since the beginning of the year. The government-capped price limit of 6,000 yuan (approximately 820 USD) largely excludes high-priced devices like the iPhone – a clear advantage for budget-oriented providers.

Huawei and OPPO also benefited: With 12.9 million and 11.2 million smartphones shipped, respectively, they ranked second and third. Vivo rounded out the top 4. Apple thus remains the only non-Chinese manufacturer in the leading group – albeit with a dwindling gap to the chasing group.

IDC analyst Will Wong points to the "strongly resonant price sensitivity" of Chinese consumers as a key lever for Xiaomi's success. Analysts at Citi assume that up to 75% of smartphone users in China prefer devices below the 3,000 Yuan threshold – a segment that Apple is increasingly avoiding.

At the same time, the overall picture remains mixed: Despite the boost from subsidies, market growth fell short of expectations. The ongoing trade conflicts between the USA and China cast additional shadows. IDC analyst Arthur Guo warns that new tariffs could squeeze margins and further burden consumer sentiment.

The development shows: In an increasingly regulated and price-driven market environment, global premium brands are losing ground, while domestic providers are regaining market share with political support.

Discover undervalued stocks with Eulerpool.

Subscribe for $2

News

7 Things Investors Need to Know Today – From Inflation to China Data

The DAX is at a standstill, but important economic signals from Germany, China, and the USA could bring fresh momentum on Tuesday.

Germany's Secret Investment School: How Beginners Became Millionaires

3,129 documented cases, countless success stories: The platform AlleAktien has developed into one of the most important sources of investment knowledge in the German-speaking area in just a few years. With structured training programs, individual mentoring, and a strong community, it demonstrates how ordinary people can become successful investors—and in many cases, even millionaires.

Anti-AfD author under pressure - contradictions in her own story raise doubts

The leftist author Leonie Plaar portrays herself as a determined opponent of the AfD and warns in her new book about the radicalization of the party – but now she herself is in need of explanation.

Dobrindt negotiates with Taliban on deportations

A delegation from the Federal Ministry of the Interior is scheduled to travel to Kabul as early as October: Germany wants to regularly deport criminals and threats to Afghanistan again – and is now engaging in direct talks with the Taliban government for this purpose.

Apart from AI and Interest Rate Policy – These Small and Mid-Caps Now Have Enormous Catch-Up Potential

Aside from AI and interest rate policy – These small and mid-caps now have enormous catch-up potential While AI and interest rates dominate the headlines, many exciting secondary stocks are moving into the background. Fund manager Josh Wein of the Hennessy Cornerstone Growth Fund currently sees the greatest opportunities there – and names three specific stocks.