After two years of declines, Apple’s iPhone sales in China finally reversed course, posting an 8% year-over-year growth during the second quarter of 2025. The rebound was driven by aggressive pricing strategies, increased trade-in values, and government-backed subsidies, according to Counterpoint Research.
First iPhone Sales Growth in Two Years
Between April 1 and June 22, 2025, Apple saw a marked improvement in its China performance. This was the first quarter of year-over-year iPhone sales growth in China since Q2 2023. The growth came as a result of:
- Steep discounts on the iPhone 16 series from Chinese platforms like JD.com and Tmall, reaching up to ¥2,530 ($351) off
- Enhanced trade-in credits for older iPhone models
- Government subsidies up to ¥500 for eligible iPhones under ¥6,000
- Mac devices also saw subsidies of up to ¥2,000
These incentives coincided with China’s 618 shopping festival, a key mid-year retail event, prompting a surge in consumer spending on electronics.
Apple Ranks Third in China Market
Despite the growth, Apple remained third in unit shipments for the quarter. Huawei led the market with a 12% year-over-year sales increase, followed by Vivo, which saw a 9% decline.
Other key takeaways:
- Xiaomi and Oppo continue to pressure Apple with lower-cost alternatives offering competitive hardware
- Apple was the only major smartphone brand to post a shipment decline in Q1 2025
- The Chinese smartphone market as a whole grew 1% in Q2
Apple’s performance improved significantly, but the competitive landscape remains intense.
A Temporary Boost?
Counterpoint analysts caution that this iPhone sales rebound may be short-lived. The national smartphone subsidy program—a major factor in Q2 growth—is expected to wind down in the second half of 2025.
Apple also continues to face regulatory hurdles, trade tensions, and usage restrictions on iPhones in government-affiliated workplaces. These structural issues, along with domestic competition, could challenge sustained growth in China.
Why China Still Matters to Apple
China remains a critical market, accounting for an estimated 20% of global iPhone sales. As Apple prepares to report its fiscal Q3 earnings on July 31, investors will closely watch how the iPhone 16 lineup has performed both in China and internationally.
The Q2 2025 performance in China could signal a strategic turning point if Apple manages to retain momentum heading into the iPhone 17 launch cycle.
