Apple revenue in China falls 4% to $14.5b over supply issues

Apple reported a nearly 4% drop in China revenue to US$14.5 billion for the quarter ending September, missing analyst expectations of US$16.4 billion.

CEO Tim Cook said supply disruptions caused the drop and expressed optimism about future growth as the iPhone 17 gains traction in China.

Counterpoint Research reported a 29% year-on-year rise in China sales for the iPhone 17 and 17 Pro during the first two weeks of October.

Apple faces increased competition from Chinese brands, with Huawei leading the premium smartphone segment, and Xiaomi boosting its presence with the Xiaomi 17 series.

Cook noted higher store traffic in China and strong reception for the latest iPhones, but did not provide specific revenue guidance for the region in the upcoming quarter.

Apple achieved record September-quarter revenue from services in China.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Early iPhone 17 momentum leans to channel fill over lasting demand

Counterpoint pegs iPhone 17 sales in the US and China up 14% vs. iPhone 16 in first 10 days 1.
Launch windows often include channel fill by retailers and carriers. Those shipments stock shelves and pad early tallies versus real purchases.
Apple’s China revenue fell nearly 4% to US$14.5 billion in the September quarter. It missed analyst estimates by US$1.9 billion, which signals ongoing strain.
Huawei led China’s smartphone market in Q1 2025 with 20% share 2. Android is set to grow 5.6% in China in 2025 while iOS may slip 1.9% 3. That could cap iPhone 17’s runway.

Recommerce and trade-in platforms should prepare for iPhone 17-driven inventory surge

New flagships trigger trade‑in waves as people upgrade. This creates supply for refurbished operators and logistics firms, so recommerce (the buying and selling of pre‑owned devices) spikes after launch.
China’s refurbished smartphone market could hit USD 19.79 billion by 2030 with a 9.51% CAGR 4. Mid‑tier devices priced at CNY 1,000-1,999 took 43.8% of 2024 sales.
Online platforms hold 68.3% of 2024 transaction value 4. Digital‑first recommerce players can win iPhone trade‑ins through online partnerships and verification services (device inspection and authenticity checks).
ATRenew, Xianyu, and JD.com‑affiliated Aihuishou control about 43% of market gross merchandise value (GMV) 4. They should boost grading capacity (testing and quality classification) and expand reverse logistics networks (collection and transport of used devices) to handle more iPhone 16 and older models.