Apple iPhone Sales Rise in China for First Time Since 2023

Apple iPhone Sales Rise in China for First Time Since 2023

Apple has posted its first quarterly growth in iPhone sales in China in two years, signaling a potential turnaround in a market that has posed major challenges for the company. According to Counterpoint Research, iPhone sales rose 8% year-over-year in the quarter ending June. This marks the first time since Q2 2023 that Apple has recorded growth in the world’s second-largest economy.

The recovery follows a prolonged slump driven by trade tensions, government-backed incentives for domestic brands, and increased competition from Chinese smartphone makers. Apple’s market share had steadily declined, with Q1 shipments falling while rivals gained ground. That trend now shows signs of reversing.

Price Cuts and Strategic Timing Drive Rebound

Counterpoint attributes the sales bump to Apple’s pricing strategy and well-timed participation in local promotional events. The company adjusted iPhone prices in May, just ahead of China’s major mid-year 618 shopping festival.

“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” said Ethan Qi, associate director at Counterpoint Research. The annual festival sees aggressive discounting by Chinese e-commerce platforms, which helped drive interest in the iPhone 16 lineup.

Along with the price cuts, Apple increased trade-in values for older models, creating further incentive for consumers to upgrade. These moves reflect a shift in Apple’s China strategy, adapting to local market conditions rather than holding firm on premium pricing.

Competitive Pressure from Huawei Intensifies

Despite the improvement, Apple still faces fierce competition in China. Huawei, once sidelined by U.S. sanctions, has staged a strong comeback since late 2023. The company’s new smartphones, featuring domestically developed chips, have resonated with Chinese consumers.

“Huawei is still riding high on core user loyalty as they replace their old phones for new Huawei releases,” said Ivan Lam, senior analyst at Counterpoint. Huawei’s sales rose 12% year-over-year in Q2, making it the top smartphone brand in China by market share. Vivo followed in second place, with Apple holding third.

The new report, first cited by CNBC, lands just ahead of Apple’s fiscal Q3 earnings announcement, scheduled for July 31. The results will cover April through June, giving investors a fuller picture of Apple’s performance in China and beyond.

While Apple’s challenges in China remain, the latest sales data suggest its recalibrated approach is starting to pay off.

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