• Apple’s iPhone sales in China rose 8% year-on-year in Q2 2025, its first growth in the market since 2023.

• Strategic discounts ahead of China’s 618 shopping festival and increased trade-in values helped boost sales.

• Despite the rebound, Apple faces competition from Huawei and political pressure from the US administratration.

Apple has recorded its first year-on-year iPhone sales growth in China in two years, marking a notable development in one of its most critical and challenging markets.

According to data from Counterpoint Research, iPhone sales in China rose by 8% in the second quarter of 2025 compared to the same period a year earlier.

This growth, while modest, is a win for the US tech giant, which has faced a series of headwinds in China, including increased competition from domestic brands and geopolitical tensions.

Strategic promotions drive iPhone sales

The rebound in iPhone sales was largely driven by a series of strategic pricing initiatives and promotional activity.

Counterpoint Research noted that Apple’s performance in Q2 was buoyed by discounts rolled out by Chinese e-commerce platforms on the iPhone 16, its latest flagship model.

Additionally, Apple increased trade-in values for older iPhones during this period, which helped stimulate upgrades.

“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.

The 618 festival, held annually in June, is a major sales event in China’s retail calendar, with heavy discounting from e-commerce giants like JD.com and Alibaba.

Despite being third in overall market share behind Huawei and Vivo, Apple’s growth offers a counter-narrative to a trend of decline that began in mid-2023.

The rebound could also provide a measure of reassurance to investors who have watched Apple shares decline roughly 12% year-to-date.

Huawei’s comeback adds pressure

However, Apple’s return to growth has come in the shadow of a formidable resurgence from Huawei.

Once sidelined by US sanctions, Huawei has mounted a significant comeback, regaining consumer interest with new devices equipped with more advanced, domestically produced chipsets.

According to Counterpoint, Huawei saw a 12% year-on-year increase in smartphone sales during Q2 and claimed the top spot in terms of market share in China, followed by Vivo and Apple.

Huawei’s rebound has been bolstered by strong brand loyalty, particularly among its core user base.

“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.

This resurgence has complicated Apple’s competitive position in China, where its premium segment dominance is increasingly being tested by Huawei’s high-end offerings.

External pressures weigh on Apple

Beyond local competition, Apple continues to face external challenges that could impact its longer-term outlook in China.

US President Donald Trump has renewed calls for Apple to shift iPhone manufacturing back to the United States, threatening the company with tariffs if it does not comply.

Analysts have noted that such a move would be logistically and economically difficult given the cost of moving the supply chains.

Apple Shares rose 0.5% on Thursday.