Apple's Challenges in the Chinese Market and the Rise of Xiaomi
Son yıllarda Apple ve Xiaomi The competition between technology giants such as has become more pronounced, especially in the Chinese market. Apple, in the first quarter of 2025 9,8 million smartphones shipments. However, this figure represents a 9% decrease compared to the same period last year. This resulted in Apple experiencing its seventh consecutive quarterly decline in the Chinese market. So what are the reasons for this decline? And where does Xiaomi's success come from?
The Role of Government-Supported Subsidies
Experts say that Apple's decline is behind this government-backed subsidies The Chinese government offers a 6% cashback on smartphone purchases under 820 yuan (about $15). These incentives help brands like Xiaomi, a domestic manufacturer, increase their market share. Apple’s premium pricing strategy has prevented it from benefiting from these subsidies, causing its market share to decline.
Xiaomi's Sales Increase
During the same period, Xiaomi's sales increased by 40% 13,3 million units This increase reinforced Xiaomi's leadership in the market. The overall smartphone market grew by 3,3%. While Xiaomi appealed to a wide audience with its affordable products, Apple's higher priced products left it at a disadvantage in these market dynamics.
Apple's Market Share Declines
Apple’s market share in China has seen a noticeable decline, from 17,4% to 13,7%. This shows that the company is not only concerned with sales figures but also with its brand image. High pricing policy weakens Apple’s competitiveness in the Chinese market. Chinese consumers are turning to more affordable alternatives by taking advantage of government incentives.
Consumption Support Policies of the Chinese Government
The Chinese government is paving the way for domestic brands with the incentive policies it has implemented to increase domestic consumption. In this context, refunds provided for smartphone purchases under 6 yuan stand out as an important factor that increases sales. Since most of Apple's products are above this price range, they cannot benefit from these incentives. Therefore, this situation causes Apple to lose market share.
Market Dynamics and Future Forecasts
It is said that Apple should review its strategy in the Chinese market in the coming period. Pricing in the premium segment policies are not suitable for the dynamics of the Chinese market. Xiaomi's affordable pricing strategy provides a significant advantage for its continued growth in this market. Apple should rethink its pricing and develop alternative strategies to reach more consumers.
In Conclusion, The Future of Market Competition
This competition in the Chinese market seems to cause technology giants to reconsider their strategies. Apple may offer more affordable products to increase its market share and increase its sales. On the other hand, Xiaomi will try to maintain its market leadership by using its current advantage. As a result of these dynamics, it will be possible to offer more options to consumers.
