📈 Apple’s iPhone Sales in China Surge for the First Time in Two Years
Beijing, July 3, 2025 – Apple has reported a promising rebound in iPhone sales in mainland China, marking an 8% year-over-year increase in Q2 2025. This is Apple’s first quarterly uptick in Chinese iPhone volumes since Q2 2023, according to Counterpoint Research data ainvest.com+15investopedia.com+15stocktwits.com+15.
1. What Sparked the Turnaround?
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Timed price cuts & trade-in deals: Apple slashed prices on the iPhone 16 lineup in early May—up to ~2,530 CNY (≈US $351) off—and introduced enhanced trade-in credits, aligning perfectly with China’s peak 618 shopping festival ainvest.com+7investopedia.com+7macrumors.com+7.
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Government subsidies: Select devices under 6,000 CNY qualified for additional state discounts (e.g., 500 CNY), amplifying value for buyers macrumors.com+1wsj.com+1.
2. Key Numbers & Market Context
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iPhone sales rose 8% YoY in Q2 (April–June 2025), ending a two-year slump businessinsider.com+4gurufocus.com+4stocktwits.com+4.
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Despite this gain, Huawei outpaced Apple with a 12% YoY increase, cementing its leadership. Vivo followed, while Apple ranked third by units nasdaq.com+5investopedia.com+5phonearena.com+5.
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Domestic smartphone shipments in China grew ~1% this quarter, though foreign-brand phones (like Apple’s) remain under pressure investopedia.com+2macrumors.com+2gurufocus.com+2.
3. What Does It Mean for Apple?
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Strategic pricing worked: Counterpoint praised Apple’s May price adjustments as “well timed and well received” forbes.com+6investopedia.com+6stocktwits.com+6.
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Stopgap vs. long-term challenge: Analysts caution this could be a temporary bump—without sustained discounts or AI feature availability in China, momentum may fade reddit.com+2businessinsider.com+2reddit.com+2.
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Stock reaction muted: Apple shares rose slightly (<1%) on the news, though they remain ~15% below early‑2025 highs, weighed down by China concerns and tariff risks investopedia.com.
4. Competitive Landscape: Domestic Rivals Surge
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Huawei's resurgence: With a 12% YoY gain, Huawei claims top spot by market share. Its loyal user base continues upgrading older models reddit.com+7investopedia.com+7phonearena.com+7.
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Xiaomi & Vivo also strong: Vivo saw a 9% decline, but Xiaomi jumped back into first place in Q1. Together, local brands now dominate China’s 290 m+ annual smartphone market macrumors.com+2reddit.com+2phonearena.com+2.
5. Risks & Lingering Headwinds
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Tariffs & production shifts: Apple’s move to diversify manufacturing outside China (e.g., to India) has attracted threats of tariffs—adding uncertainty to pricing and margins investopedia.com+1finviz.com+1.
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AI features still delayed: Apple Intelligence, designed for iPhone 16, hasn’t launched in China yet due to local regulatory complexities—a barrier to deeper consumer adoption barrons.com+15nasdaq.com+15businessinsider.com+15.
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Foldable innovation gap: Local rivals (Huawei, Oppo, Samsung) are leading foldable phone innovation—areas where Apple currently isn’t present .
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