China’s smartphone exports to the United States have plunged to their lowest point in over a decade, signalling rising tensions in global trade and the rapid restructuring of tech supply chains. According to official trade data, shipments in April 2025 totalled just under $700 million — a staggering 72% decline compared to the previous year, marking the worst figure since 2011.
iPhone Exports Decline Alongside Industry Trends
Apple’s iPhone, which relies heavily on Chinese manufacturing hubs, has been notably affected. In Q1 2025, iPhone shipments within China dropped 9% year-over-year, totalling 9.8 million units. Apple’s share of the Chinese smartphone market also fell to 13.7%, down from 17.4% last quarter.
This decline follows seven consecutive quarters of reduced iPhone sales in China, fuelled by increased competition from local brands like Huawei and growing political pressures to reduce foreign technology reliance.
Geopolitical Shifts and Supply Chain Diversification
Much of the downturn is attributed to rising U.S.–China trade tensions. New tariffs imposed by the U.S., some reaching as high as 145% on Chinese tech goods, have led manufacturers and brands to explore alternative production bases outside China.
Apple, in particular, has accelerated its diversification strategy, expanding manufacturing operations in India and Southeast Asia. Meanwhile, regions like China’s Henan province — home to the massive Foxconn iPhone factory in Zhengzhou — reported a 60% drop in smartphone exports in early 2024.
Domestic Brands Gain Ground
As Apple retreats, Chinese tech giants like Huawei are thriving. In the first six weeks of 2024, Huawei’s smartphone sales in China jumped by 64% year-over-year, while Apple’s dropped by 24%. National policy initiatives like “Document 79” have further encouraged state-linked firms to prioritize domestic technology over foreign alternatives.
Outlook
China’s plummeting smartphone exports to the U.S. are more than a trade issue — they reflect a reshaping of the global tech landscape. As companies adapt to political and economic headwinds, the future of smartphone manufacturing appears increasingly multipolar.
Photo Credit: Unsplash/@onurbinay
