iPhone China Sales Rise for First Time in 2 Years

Apple’s iPhone sales in China grew for the first time in two years during the second quarter, as the U.S. tech giant works to revive its business in this crucial market.

According to Counterpoint Research, iPhone sales in China rose 8% year-on-year in the three months ending June 30. It marks Apple’s first quarterly growth in the country since Q2 2023.

The growth was boosted by heavy promotional discounts in May as Chinese e-commerce platforms slashed prices on Apple’s latest iPhone 16 series. Additionally, Apple increased trade-in values for older iPhones to attract more buyers.

“Apple’s timing in adjusting iPhone prices was spot-on and well received, as it came just ahead of the 618 shopping festival,” said Ethan Qi, Associate Director at Counterpoint Research. The 618 shopping event, held every June, is one of China’s biggest online sales periods, with retailers offering deep discounts.

Apple’s return to growth in China is a positive sign for investors who have seen the company’s stock drop roughly 15% this year amid various challenges.

One major headwind comes from political pressure in the U.S. President Donald Trump has threatened Apple with potential tariffs and called on CEO Tim Cook to manufacture iPhones in America—something industry experts say is almost impossible given Apple’s deep supply chain ties to China.

At the same time, Apple faces fierce competition in China from Huawei. After years of struggling under U.S. sanctions, Huawei made a strong comeback in late 2023 by launching a new smartphone featuring an advanced chip—technology many believed Chinese companies would struggle to produce.

Since then, Huawei has aggressively rolled out new devices in China and is cautiously re-entering international markets. This strategy has helped Huawei steadily erode Apple’s market share in China.

Huawei’s sales rose 12% year-on-year in the second quarter, according to Counterpoint. It became the largest smartphone brand in China by market share, followed by Vivo in second place and Apple in third.

“Huawei continues to benefit from strong core user loyalty as many consumers upgrade from older Huawei models to the latest releases,” said Ivan Lam, Senior Analyst at Counterpoint.

While Apple’s recent growth in China offers a glimmer of hope, the competitive landscape remains intense, with Huawei posing a significant and persistent challenge.