“Apple’s iPhone sales in China surged 8% in Q2 2025, ending a two-year slump, driven by strategic pricing, the iPhone 16 lineup, and 618 festival promotions. Despite Huawei’s dominance, Apple reclaimed third place in market share, leveraging subsidies and trade-in deals. Challenges like potential subsidy cuts and U.S. tariffs loom, but Apple’s comeback signals resilience in a competitive market.”
Apple’s Remarkable iPhone Sales Revival in China
Apple Inc. has staged a significant recovery in China, its third-largest market, with iPhone sales rising 8% year-over-year in the second quarter of 2025, according to Counterpoint Research. This marks the first growth in the region since Q2 2023, breaking a prolonged decline driven by fierce competition and geopolitical challenges. The surge was fueled by well-timed promotions during China’s 618 shopping festival, a major e-commerce event, alongside the introduction of the iPhone 16e, a lower-cost model priced at $599. This budget-friendly option expanded Apple’s appeal to price-sensitive consumers, complementing the premium iPhone 16 Pro and Pro Max models.
The iPhone 16e, launched earlier in 2025, offered a compelling feature set compared to the 2022 iPhone SE, driving sales volume in China’s competitive midrange segment. Strategic price cuts in May, just before the 618 festival, and improved trade-in values for older iPhones further boosted demand. Government subsidies also played a critical role in supporting consumer spending and local production during this period. However, analysts warn that these incentives may taper off later in 2025, potentially exposing weaker underlying demand.
Despite Apple’s rebound, Huawei remains the market leader, posting a 12% year-over-year sales increase in Q2 2025, driven by strong brand loyalty and advanced technology, including a new smartphone with a cutting-edge chip launched in late 2023. Vivo secured second place despite a 9% sales decline, while Apple ranked third in overall unit shipments. The broader Chinese smartphone market saw only slight year-over-year growth, reflecting economic uncertainties and consumer hesitancy to splurge on premium goods.
Apple’s success in Q2 2025 highlights its adaptability in a complex market. The company has mitigated risks from U.S.-China trade tensions, including tariffs of up to 145% on Chinese imports, by diversifying its supply chain to include increased production in India and Vietnam. However, challenges persist, including regulatory pressures and restrictions on iPhone use in government-linked workplaces in China. Analysts remain cautious about Apple’s ability to sustain this momentum, particularly if subsidies are reduced in the second half of 2025.
The iPhone 16 lineup’s strong performance, with three models ranking among the top bestsellers during the 618 festival, underscores Apple’s strategic pricing and understanding of local market dynamics. Yet, the heavy reliance on discounts raises concerns about profit margins, and the company’s tariff-dodging strategy via India involves costly logistics. As Apple navigates Huawei’s competitive surge and potential tariff-related disruptions, its ability to maintain this growth trajectory will be closely watched by investors and industry observers alike.
Disclaimer: This article is based on reports and data from Counterpoint Research and other publicly available sources, including news outlets like AppleMagazine, MacRumors, and Reuters, as well as posts found on X. The information reflects market trends and analysis as of July 7, 2025, and is subject to change. Readers are advised to verify details independently for the latest updates.