Apple is facing weaker demand in China, with new government data indicating that smartphone shipments in the country dropped in February. The iPhone seems to be taking a bigger hit than others.
This data comes from the China Academy of Information and Communications Technology (CAICT), a state-supported research organization that monitors phone sales and shipments in the Chinese market. The figures reveal that overall smartphone shipments in China fell in February compared to the same month last year, and analysts are particularly focused on Apple’s share of this decline.
| Apple (AAPL) — By The Numbers | |
|---|---|
| Stock Price | $252.89 (+0.11%) |
| CEO | Tim Cook |
| Headquarters | Cupertino, CA |
| Founded | 1976 |
| Sector | Big Tech |
| Foldable market growth (2025) | +28% year-over-year |
What’s Happening in China
China ranks as Apple’s third-largest market, and the company has been struggling there for over a year. Local competitors like Huawei, Xiaomi, and OPPO are gaining traction with feature-rich phones at lower prices. Additionally, Chinese consumers are showing less enthusiasm for foreign brands, partly due to ongoing geopolitical tensions between the U.S. and China.
The February shipment data adds to a trend that analysts are closely monitoring. The CAICT numbers track phones entering the market — think of it as counting how many boxes retailers stock — rather than direct sales to consumers. A drop in shipments generally signals that either demand is softening or retailers are clearing out existing inventory before placing new orders.
For Apple, which usually experiences a seasonal dip in February (the iPhone 16 lineup launched back in September 2025), these numbers are still seen as a sign of weaker-than-expected performance in the region.
The Foldable Wild Card
One factor adding complexity to Apple’s situation in China is the rapid rise of foldable phones — and Apple isn’t part of it. According to CNET, foldable smartphone shipments (devices with screens that physically fold in half) grew by 28% globally in 2025, even with Apple on the sidelines.
In China, brands like Huawei and Samsung are aggressively promoting foldables. While they still represent a small portion of the overall market, their fast growth indicates that Chinese consumers are eager to try new designs. Apple currently isn’t meeting that demand, as it has no foldable product available.
What This Means for You
If you’re using an iPhone, the slowdown in China probably won’t affect your experience directly. However, it does have some implications worth considering.
First, China’s significance to Apple goes beyond just selling phones there. A substantial number of iPhones are also made in China. Trade tensions that dampen consumer sentiment can complicate Apple’s supply chain. While Apple is diversifying its manufacturing to India and Vietnam, China remains crucial.
Second, weaker performance in China pressures Apple to accelerate growth in other regions, including the U.S. and Europe. This competitive pressure can actually benefit consumers, pushing companies towards better pricing and faster innovation.
Third, if Apple decides to enter the foldable market (which many speculate but hasn’t been confirmed), China would be a vital battleground. Gaining momentum there before launching a new product line would be essential for Apple’s overall performance.
Community Reaction
“China’s domestic brands have genuinely caught up. My cousin switched from iPhone to a Huawei and says he doesn’t miss anything. Apple needs to do something different there, not just sell the same phone.”
“The foldable thing is real. Every time I go to a phone store in Shenzhen, that’s what people are looking at. Apple not having one is starting to actually matter.”
What To Watch
- Apple’s next earnings call: Apple typically reports quarterly results in late April or early May. Executives will likely face direct questions about their performance in China, and any guidance Tim Cook provides about the region will impact markets.
- March CAICT data: The next monthly shipment report from China will reveal if February’s decline was a one-time issue or part of a longer trend. Look for that data in mid-to-late April.
- iPhone 17 launch window: Apple’s next major iPhone is expected in fall 2026. Whether it includes meaningful AI features designed for Chinese users — Apple Intelligence (Apple’s suite of on-device AI tools) has faced challenges in China due to regulatory requirements — could influence whether Apple can turn things around before year-end.
- Foldable Apple rumors: Analyst insights and supply chain reports suggest a potential Apple foldable could arrive as early as 2026 or 2027. Any credible confirmation of a timeline would shift the conversation about Apple in China. 9to5Mac has full coverage of the CAICT report here.
