Apple reported a 4.4% increase in revenue from Greater China to US$15.4 billion for the June quarter, marking its first sales growth in the region in two years.

The US-based technology company had previously seen seven consecutive quarters of declining sales in China.

Apple attributed the rebound to demand for new Mac computers and strong iPhone sales among urban consumers.

CEO Tim Cook said the MacBook Air topped laptop sales in China, while the Mac Mini led desktop sales.

Government subsidies for electronics purchases may have contributed to increased demand, according to Cook.

Cook also noted that many buyers of Mac, iPad, and Apple Watch in China were first-time customers.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Government subsidies provided crucial but temporary boost to smartphone demand

Apple’s China rebound coincides with an aggressive government subsidy program that generated nearly $20 billion in digital product sales within four months of launch 1.

The Chinese government expanded its consumer subsidy program in 2025 to include smartphones, offering discounts of up to 15% for devices under CNY6,000 as part of broader efforts to stimulate domestic consumption amid economic uncertainty 2.

However, early data suggests these subsidies created only temporary demand spikes rather than sustained growth.

Weekly smartphone sales showed consecutive year-on-year declines after the initial subsidy boost, indicating that financial incentives alone may not address underlying consumer hesitance 3.

This suggests Apple’s 4.4% China growth may face challenges once subsidy effects fade, particularly given that analysts predict sustained demand will require product innovations beyond financial incentives 4.

2️⃣ Local Chinese brands have fundamentally shifted competitive dynamics

Apple’s growth comes despite losing significant market position to resurgent Chinese competitors, with the company now ranking fifth in smartphone market share behind Huawei and Xiaomi 5.

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