Apple’s iPhone sales in China rose 8% year-on-year in Q2 2025, marking the first growth in two years, driven by aggressive pricing, national subsidies, and the 618 shopping festival. Despite fierce competition from Huawei, Apple’s strategic discounts and market recovery signal a rebound in its key market.
Apple’s Remarkable iPhone Sales Recovery in China
In a significant turnaround, Apple’s iPhone sales in China recorded an 8% year-on-year increase in the second quarter of 2025, spanning April to June, according to Counterpoint Research. This marks the first growth in the region since Q2 2023, signaling a recovery for the tech giant in one of its most critical markets. The surge comes after a challenging period, with Apple facing an 18.2% sales drop in the final quarter of 2024 and a 17% annual decline, as reported by Canalys.
The primary driver behind this rebound was Apple’s aggressive pricing strategy. In May, ahead of China’s mid-year 618 shopping festival, major e-commerce platforms like JD.com and Tmall offered substantial discounts on the iPhone 16 lineup, with reductions of up to 2,530 yuan ($351). For instance, the iPhone 16 Pro 128GB, originally priced at 7,999 yuan, was available for as low as 5,499 yuan after subsidies and vouchers. These price cuts, combined with China’s national consumer subsidy program for smartphones, significantly boosted demand.
The 618 shopping festival, a major e-commerce event in China, played a pivotal role. Ethan Qi, associate director at Counterpoint Research, noted that Apple’s well-timed price adjustments in May were “well received” by consumers, capitalizing on the festival’s heavy discounts. This strategic move helped Apple reclaim the top spot in China’s smartphone market in May, with global iPhone sales growing 15% year-on-year during April and May.
However, Apple’s success comes amid intense competition from domestic brands, particularly Huawei, which has staged a remarkable comeback. Huawei’s sales grew 15.5% in Q4 2024, driven by its Mate 70 and Nova 13 series, reclaiming the top spot in China’s smartphone market. Huawei’s ability to offer AI features and locally-made chipsets has resonated with consumers, especially as Apple’s Apple Intelligence features remain unavailable in China due to regulatory constraints.
Despite the Q2 growth, analysts caution that Apple’s momentum may wane in the second half of 2025 as China’s smartphone subsidy program is expected to scale back. Additionally, local brands like Xiaomi, Oppo, and Vivo continue to challenge Apple with competitively priced, feature-rich devices. Xiaomi, for instance, saw a 39.9% shipment increase in Q1 2025, reclaiming the top spot, while Apple’s shipments fell 9%.
Apple’s challenges in China are compounded by broader market dynamics. The Chinese smartphone market saw a 3.2% year-on-year decline in Q4 2024, reflecting cautious consumer sentiment. Moreover, Apple’s premium pricing strategy has been less effective in a market where budget-conscious consumers are drawn to affordable yet advanced alternatives from domestic manufacturers.
To counter these headwinds, Apple has intensified efforts to strengthen its foothold. CEO Tim Cook’s multiple visits to China in 2024 underscored the market’s importance, with efforts to forge partnerships for rolling out Apple Intelligence. The company also increased trade-in values for older iPhone models to encourage upgrades, with the iPhone 15 Pro Max trade-in value rising to 5,700 yuan from 5,625 yuan.
Apple’s performance in China remains a critical barometer for its global prospects. The country accounts for approximately 20% of global iPhone sales, making it the second-largest market after the US. While the Q2 2025 surge is a positive sign, sustaining growth will require navigating regulatory hurdles, intensifying competition, and adapting to shifting consumer preferences in China’s dynamic smartphone market.
Disclaimer: This article is based on reports, news, and data from sources including Counterpoint Research, Canalys, Reuters, Bloomberg, and posts on X. Information is accurate as of July 6, 2025, and subject to change based on new developments.