Apple Rebounds in China with First iPhone Sales Growth in Two Years

Apple has posted its first iPhone sales increase in China in two years, marking a key turnaround in one of its most vital markets, according to Counterpoint Research. In the quarter ending June, iPhone sales in the country rose 8% year-over-year.

This growth was largely driven by strategic price reductions and promotional campaigns in May, including discounts on the iPhone 16 series by major Chinese e-commerce platforms. Apple also boosted trade-in values for select models, making upgrades more attractive to consumers.

“The timing of Apple’s May price cuts was spot on, arriving just ahead of the annual 618 shopping festival,” said Ethan Qi, associate director at Counterpoint Research. The 618 event, held every June, sees major online retailers offering steep discounts.

The sales uptick comes as welcome news for Apple investors, especially with the company’s stock having declined roughly 15% this year amid growing challenges. Apple is facing pressure from both geopolitical and market forces. Former U.S. President Donald Trump previously called for iPhones to be manufactured in the U.S., a move analysts say is impractical. Meanwhile, China has become increasingly competitive for Apple, especially after Huawei’s unexpected comeback.

Huawei, once crippled by U.S. sanctions, made a strong return in late 2023 with a new smartphone powered by a surprisingly advanced chip. Since then, the company has rapidly expanded its product lineup in China and is beginning to re-enter global markets. This resurgence has cut into Apple’s market share.

In Q2, Huawei’s sales grew by 12% year-on-year, making it the top smartphone brand in China, followed by Vivo and then Apple. “Huawei continues to benefit from strong brand loyalty, with many users upgrading to its latest models,” said Ivan Lam, Senior Analyst at Counterpoint.