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Home»Mobile Tech»The iPhone Is Suddenly Doing Better in China
Mobile Tech

The iPhone Is Suddenly Doing Better in China

July 4, 2025No Comments5 Mins Read
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As Apple continues to work on delivering Apple intelligence in China, plainly iPhone gross sales within the Center Kingdom have taken a shocking flip for the higher.

China has lengthy been thought of considered one of Apple’s most crucial markets for the iPhone, which isn’t shocking, contemplating it accounts for practically a fifth of the world’s inhabitants and 1 / 4 of the worldwide smartphone market. Of the over 300 million smartphones offered worldwide within the first quarter of 2025, practically 72 million had been offered in China.

Evidently, Apple needs to assert its piece of that pie, however it’s been difficult for the iPhone because it’s additionally essentially the most aggressive smartphone market on this planet. Chinese language manufacturers nonetheless dominate, with native homegrown heroes like Huawei and Xiaomi being the extra in style decisions.

It additionally doesn’t harm these corporations that they profit extra from authorities subsidies than Apple does. The Chinese language authorities helps offset the acquisition worth of cheaper telephones, however most of Apple’s iPhone lineup exceeds that threshold, leaving Chinese language customers to pay full worth if they need an Apple flagship.

Over the previous two years, Apple’s market share in China has declined, most notably to 13.7% in Q1 2025, from round 20% in early 2024. In accordance with estimates, it shipped solely 9.8 million iPhones in China throughout that quarter, and that’s simply the latest of what’s been a nasty run since late 2022 — a interval throughout which it had just one quarter the place it posted year-over-year income progress in China.

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In the meantime, Xiaomi elevated its shipments by 40% year-over-year in Q1 2025. Client spending on smartphones in China additionally tends to run decrease than within the US, with the common promoting worth (ASP) of a Chinese language smartphone at $270 (in USD) in comparison with $430 in the USA. A part of that’s on account of subsidies, however there’s additionally a a lot bigger number of very succesful Chinese language-made smartphones which can be offered completely in that nation, in addition to new Chinese language-approved AI fashions that Apple can’t (but) compete with. By comparability, the iPhone’s ASP in China is $790 (in USD), in comparison with $900 within the US.

iPhone Gross sales Bounce Again

However, Apple appears to have turned issues round within the second quarter. New knowledge from Counterpoint Analysis reveals that iPhone gross sales in mainland China grew in Q2 2025 by 8 p.c over the year-ago quarter.

Whereas that’s a wholesome improve for the iPhone, Apple’s progress continues to be overshadowed by Huawei, which posted a 12 p.c year-over-year progress and stays poised to take the primary spot within the Chinese language marketplace for the quarter.

The expansion in iPhone gross sales wasn’t merely random. As CNBC notes, Apple has been making a full-court press with Chinese language e-commerce corporations, which started providing reductions on the iPhone 16 fashions through the quarter to coincide with the 618 purchasing pageant — basically China’s model of Black Friday and Amazon Prime Day mixed.

Throughout that interval, main Chinese language e-tailers resembling JD.com and Tmall had been providing reductions of as much as $350 off retail costs for the iPhone 16, whereas Apple additionally elevated the trade-in values of older fashions to encourage upgrades. These reductions additionally introduced entry-level iPhone fashions inside the attain of China’s subsidies, making them much more engaging to patrons.

See also  Apple iPhone 16 review: Unexpectedly irksome

“Apple’s adjustment of iPhone costs in Could was effectively timed and effectively acquired, coming every week forward of the 618 purchasing pageant,” Ethan Qi, Counterpoint’s affiliate director, mentioned in a press launch.

The bump is much more exceptional contemplating that Counterpoint reported the 618 gross sales interval was flat year-over-year, “reflecting sluggish client spending over the pageant interval.” In different phrases, Chinese language customers didn’t spend considerably extra general than final yr, however they did spend extra on iPhones.

Nonetheless, it’s too early to interrupt out the champagne for Apple’s ambitions in China. Since a lot of the gross sales bump was pushed by each reductions and subsidies, it might simply be an aberration. China’s authorities can be anticipated to cut back the nationwide subsidy on smartphones later this yr.

A change in subsidies might in the end profit iPhone gross sales by narrowing the hole between Apple’s pricier fashions and different in style smartphones within the Chinese language market. Additional, Apple has but to launch Apple Intelligence in China. Whereas its AI options have acquired a lukewarm reception in Western markets, Chinese language smartphone customers are way more smitten by AI options, as a lot of them rely totally on their cellular units. The problem for Apple gained’t be a lukewarm reception for Apple Intelligence, however slightly if it may well compete with the instruments already being supplied by its opponents, who’ve had a considerable head begin on this market.





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