Apple’s iPhone sales in China increased by 8% year-on-year in the second quarter of 2025.

This marks the first growth in two years, according to Counterpoint Research. The growth occurred during the three months ending in June.

The increase was linked to promotional efforts. These included discounts on iPhone 16 models by Chinese e-commerce platforms in May and enhanced trade-in offers from Apple.

These initiatives were timed ahead of China’s annual “618 shopping festival” in June, where many retailers provide discounts.

Despite this growth, Apple remains the third-largest smartphone vendor in China. It follows Huawei and Vivo.

Apple’s return to growth in China comes amid ongoing challenges.

These include competition from Huawei and external pressures such as geopolitical tensions and potential tariff threats from the US government.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Apple’s success in China follows a cyclical pattern tied to pricing strategy and product timing

Apple’s recent 8% growth in China follows a multi-year pattern of fluctuations in this crucial market.

The company previously dominated China in late 2021, capturing a record 23% market share after the iPhone 13 launched at a lower price point than its predecessor 1.

This success was short-lived, as Apple’s position deteriorated steadily, falling to third place by late 2024 with 16.1% market share 2 and further declining to fifth place by Q1 2025 with just 9.2 million units shipped 3.

The current rebound demonstrates Apple’s reliance on pricing tactics in China, with the strategic timing of discounts before the “618” shopping festival proving crucial to reversing the downward trend.

This pattern shows Apple’s dependence on price adjustments to maintain competitiveness in China, with each generation of iPhone requiring increasingly aggressive promotions to drive sales.

2️⃣ Government policies significantly reshape China’s smartphone competitive landscape