Apple recorded its first year-over-year iPhone sales growth in China in two years during the second quarter of 2025, marking a break from its consistent streak of downward trajectory. The Chinese market is strategically important for Apple, as it brings an enormous portion of revenue to the company, and the latest growth could stretch until the next quarter if the company plays its cards right.
Competition from Huawei and Vivo remains strong as Apple fights to maintain its iPhone position in China
According to Counterpoint Research, the iPhone finally brought in the numbers and temporarily gained momentum in the Chinese market. Between April 1 and June 22 this year, iPhone sales in mainland China increased by 8 percent compared to the same time last year. If you are not following up with the company’s trend in the market, this is the first quarterly increase in the region since the second quarter of 2023. Apple raked in more sales with aggressive pricing strategies and government-backed subsidies ahead of China’s mid-year 618 shopping festival.
In May, major Chinese e-commerce platforms such as JD.com and Tmall offered hefty discounts on the iPhone 16, slashing prices by as much as 2,530 yuan or $351 below the retail price. The company also boosted trade-in values for older iPhone models, which encouraged users to trade in older models for new ones. Additionally, select devices purchased directly from Apple at prices below 6,000 yuan qualify for up to 500 yuan in national subsidies. Some Mac models also saw a discount of up to 2,000 yuan under the same program.
Apple experienced a year-over-year decline in sales and revenue from the third quarter of 2022 to the first quarter of 2025, except for one. We have previously reported various reasons why the company had to go through such turmoil, including regulatory scrutiny, trade tensions, and iPhone-associated rules in government-affiliated workplaces. The domestic market also had a major role to play, with companies like Huawei, Xiaomi, and Oppo continuing to improve the set of features in their devices. More importantly, the local companies have evolved their handsets significantly in terms of design, while Apple has strictly followed its own route for the past five years.
Despite Apple’s comeback, it still trailed behind Huawei, which maintained a 12 percent YoY growth and took the top spot. The second spot was captured by Vivo, despite a 9 percent decline in YoY sales. Apple took the third spot in the region, which is a significant achievement for the company. China remains a critical market for Apple as it captures 20 percent of its total global share for iPhone shipments. By the end of this month, Apple will report its fiscal earnings for the third quarter, which will offer a much clearer picture of its performance in China and additional markets.
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