Apple recorded its first rise in iPhone sales in China in two years, marking a rare bright spot for the company as it works to regain ground in a fiercely competitive market.
Sales of iPhones in China climbed 8% in the second quarter compared to the same period last year, according to a new report from Counterpoint Research. The last time Apple posted growth in the region was in the second quarter of 2023.
The rebound was largely driven by aggressive discounting and trade-in incentives rolled out ahead of China’s annual 618 shopping festival in June. Major e-commerce platforms slashed prices on the iPhone 16, Apple’s latest model, boosting demand.
“Apple’s timing in adjusting prices was spot-on,” said Ethan Qi, associate director at Counterpoint, noting the tech firm’s promotional campaign landed just days before the country’s major retail event.
The uptick in sales comes as a relief for investors, who have watched Apple shares drop about 15% this year. The company faces mounting pressure from both geopolitical tensions and a resurgent Huawei, which continues to claw back market share following its late 2023 comeback.
Huawei saw its own smartphone sales increase 12% in the second quarter, making it China’s top brand by volume. Vivo came in second, while Apple ranked third.
Despite the gains, Apple’s position remains precarious. President Donald Trump has recently renewed calls for Apple to move iPhone production to the United States, even threatening tariffs. Meanwhile, Huawei continues to build momentum by capitalizing on national loyalty and rapidly releasing new models.
“Chinese consumers are sticking with Huawei as they upgrade,” said Ivan Lam, senior analyst at Counterpoint.
Apple now finds itself navigating a market where competition is intensifying, national sentiment plays a larger role, and Washington’s trade pressure shows no signs of easing.
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