TLDRs;
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- Apple posted its first year-on-year iPhone sales growth in China since 2023, rising 8% in Q2 2025.
- The sales surge was driven by discounts on iPhone 16 models and strong performance during the 618 shopping festival.
- Despite the rebound, Apple remains in third place behind Huawei and Vivo amid rising local competition.
- Government subsidies and geopolitical factors continue to shape China’s smartphone landscape, adding pressure on Apple’s long-term growth strategy.
Apple has finally reversed a two-year sales decline in China, posting an 8% year-on-year increase in iPhone shipments for the second quarter of 2025.
According to data from Counterpoint Research, this marks the first positive growth Apple has recorded in the Chinese market since 2023, signaling a possible turnaround in what has become an increasingly competitive and politically complex environment.
Strategic pricing and promotions fuel iPhone revival
The rebound is widely credited to aggressive promotional tactics and well-timed discounts on the iPhone 16 series, especially in the weeks leading up to China’s 618 shopping festival in June.
Major Chinese e-commerce platforms offered limited-time price cuts, while Apple itself boosted trade-in incentives, creating a strong uptick in consumer interest.
The resurgence was further underscored during the 618 festival, where Apple dominated smartphone sales both in volume and value. According to TechInsights, the iPhone 16 Pro, 16 Pro Max, and base iPhone 16 ranked as the top-selling models across all categories. JD.com emerged as the leading online platform driving Apple’s sales surge during the festival, reinforcing the importance of digital channels in Apple’s China strategy.
Apple gains ground, but rivals stay ahead
Despite the sales growth, Apple remains the third-largest smartphone vendor in China, trailing behind domestic giants Huawei and Vivo.
These companies have strengthened their foothold in the market thanks to targeted government subsidies and a growing wave of consumer loyalty toward local brands. In particular, Huawei has staged a remarkable comeback, capturing the top spot in Q1 2025 with its Nova 13 and Pura 70 series. The company’s ability to innovate despite ongoing U.S. sanctions has significantly reshaped China’s smartphone landscape.
Apple’s growth in Q2 follows a sharp decline earlier this year, when it slipped to fifth place in market share during Q1. In that period, the company shipped just 9.2 million units, losing ground to Xiaomi and Honor, which capitalized on government subsidies for mid-tier devices. With the Chinese government heavily promoting devices priced under CNY 6,000, Apple’s premium price point limited its eligibility for these incentives.
Apple’s market pattern reflects past cycles
The company’s response appears to have effectively recalibrated its value proposition for Chinese consumers, at least temporarily. This cyclical pattern of performance is not new for Apple in China. The company saw similar success in late 2021 after launching the iPhone 13 at a relatively lower price, capturing a then-record 23% market share.
That momentum quickly faded as local competitors adapted and Apple refrained from adjusting its pricing strategy further. The current rebound suggests Apple is once again leaning into flexible pricing and promotional campaigns to stay relevant in China’s fast-moving smartphone sector.
Geopolitical tensions cast long-term uncertainty
However, Apple’s challenges in the Chinese market extend beyond price and product timing. Geopolitical tensions, potential U.S. tariff threats, and the broader push for domestic self-sufficiency in China’s tech sector all remain significant hurdles.
While the 8% growth in Q2 is a welcome shift, sustaining that momentum will require Apple to maintain its adaptability in a market that’s increasingly shaped by political currents and local innovation.
