Apple has achieved a noteworthy milestone by recording its first year-over-year iPhone sales growth in China in two years during the second quarter of 2025. This marks a significant reversal from its prior trend of declining sales in the region. China, being a vital market, contributes significantly to Apple’s revenue, and with strategic moves, the company could potentially sustain this momentum into the next quarter.
The competition remains fierce with rivals like Huawei and Vivo challenging Apple’s dominance. According to Counterpoint Research, Apple’s iPhone has regained some traction in China, with an 8% sales increase from April 1 to June 22 compared to the previous year. This growth, the first since the second quarter of 2023, can be attributed to Apple’s aggressive pricing strategies and government-backed incentives coinciding with China’s mid-year 618 shopping festival.
During May, major e-commerce platforms like JD.com and Tmall offered substantial discounts on the iPhone 16, cutting prices by up to 2,530 yuan (about $351) below retail. Additionally, Apple increased trade-in values for older models, motivating consumers to upgrade. Devices purchased directly from Apple that were priced below 6,000 yuan also qualified for national subsidies up to 500 yuan. Some Mac models were similarly discounted by up to 2,000 yuan.
From the third quarter of 2022 to the first quarter of 2025, Apple faced declining sales and revenue, attributable to challenges like regulatory scrutiny, trade tensions, and restrictions in government-affiliated workplaces. Meanwhile, domestic competitors like Huawei, Xiaomi, and Oppo have been enhancing their devices with innovative features and appealing designs, while Apple has stuck to its consistent design strategy over the past five years.
Despite Apple’s recent success, it still lags behind Huawei, which achieved a 12% year-over-year growth, retaining its top position. Vivo, despite a 9% decline, held the second spot. Apple took the third place, a commendable achievement given the circumstances. China represents a crucial market for Apple, contributing to 20% of its global iPhone shipments. Apple’s upcoming fiscal earnings report for the third quarter will provide deeper insights into its performance in China and other markets.
