Sales of foreign-branded smartphones in China, including those of U.S. tech giant Apple Inc., fell by 9.7% year-on-year in May, according to figures released Friday by the China Academy of Information and Communications Technology, a government-affiliated research body.

Data from the agency shows that shipments of foreign mobile phones dropped to 4.54 million units in May, down from the same month in 2023. While the CAICT report did not break out Apple’s performance specifically, analysts note the iPhone maker remains the largest foreign player in China’s smartphone market and therefore heavily influences the overall figures.

Apple has been grappling with intensifying pressure from domestic manufacturers such as Huawei, Xiaomi, and Vivo. To maintain its market share, the company has turned to aggressive discounting. In May, Chinese e-commerce platforms slashed prices on Apple’s newest iPhone 16 series by as much as 2,530 yuan (approximately $351).

The price cuts reflect a broader trend in China’s smartphone sector, where local brands are rapidly gaining ground through competitive pricing, faster innovation cycles, and nationalistic consumer sentiment.

Analysts say the latest figures highlight the increasingly uphill battle for foreign brands in the world’s largest smartphone market.