Apple's shipments of smartphones in China slumped 9% in the first quarter from a year earlier and it was the only major manufacturer to see a decline, according to data from research firm IDC.
Apple, which ranks fifth in China's smartphone market, saw shipments fall to 9.8 million phones, giving it a market share of 13.7%, down from 17.4% in the previous quarter.
By contrast, market leader Xiaomi saws its shipments surge 40% to 13.3 million while industry-wide shipments grew 3.3%.
IDC analyst Will Wong said Apple's premium pricing structure has prevented the U.S. company from capitalising on new government subsidies introduced in January which fuelled growth in the first quarter.
The government subsidies for smartphones and some other consumer electronics refund consumers 15% of products with a sticker price under 6,000 yuan ($820).
