Apple’s iPhone Makes a Remarkable Comeback in China, Reclaiming Third Place with Competitive Pricing and Renewed Market Momentum

In a significant turnaround, Apple has recorded its first year-over-year growth in iPhone sales in China during the second quarter of 2025, breaking a longstanding trend of decline. The Chinese market is vitally important for Apple, contributing a substantial share of the company’s revenue. This newfound growth could potentially continue into the next quarter if Apple successfully navigates its strategies.

Intense Competition from Huawei and Vivo as Apple Strives to Secure its iPhone Market Share

As per research from Counterpoint Research, Apple’s iPhone has seen a rebound, gaining traction in the competitive Chinese market. From April 1 to June 22 of this year, iPhone sales rose by 8 percent compared to the same period in the previous year. This marks the first quarterly increase in the area since Q2 of 2023. Factors contributing to this resurgence include aggressive pricing strategies and government-supported subsidies leading up to China’s mid-year 618 shopping festival.

In May, prominent e-commerce platforms in China, including JD.com and Tmall, provided substantial discounts on the iPhone 16, reducing prices by as much as 2, 530 yuan (approximately $351) below the manufacturer’s suggested retail price. Moreover, Apple enhanced trade-in values for older iPhone models, incentivizing customers to upgrade to newer versions. Additionally, select devices priced under 6, 000 yuan purchased directly from Apple qualified for up to 500 yuan in national subsidies, while some Mac models enjoyed discounts of up to 2, 000 yuan as part of the same initiative.

Despite this positive shift, Apple faced a prolonged period of declining sales and revenue from Q3 2022 through Q1 2025, with only one notable exception. Various factors have been identified as contributors to this downturn, such as regulatory scrutiny, trade tensions, and specific rules regarding iPhones in government-related workplaces. Furthermore, local competitors like Huawei, Xiaomi, and Oppo have consistently upgraded their devices, enhancing features and design—areas where Apple has maintained a more traditional approach for the past five years.

Although Apple has reported positive growth, it still lags behind Huawei, which posted a 12 percent year-over-year growth rate, securing the top position in the market. Vivo, while experiencing a 9 percent decline in year-over-year sales, claimed the second position, allowing Apple to rank third. This accomplishment is significant given that China represents 20 percent of Apple’s total global share for iPhone shipments. As the end of the month approaches, Apple is set to unveil its fiscal earnings for Q3, which will provide further insights into its performance in China and other markets.

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