Apple’s iPhone sales in China increased in the second quarter for the first time in two years, according to Counterpoint Research, as the tech giant aims to revive its performance in this key market.
iPhone sales in China grew 8% year-over-year during the three months ending in June, marking Apple’s first growth in the country since Q2 2023.
Apple’s performance was strengthened by May promotions, with Chinese e-commerce platforms offering discounts on the latest iPhone 16 models, Counterpoint said. Additionally, the company raised trade-in prices for certain iPhone models.
“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.
Apple’s growth rebound in China is likely to please investors following a roughly 15% decline in its stock this year amid multiple challenges.
At the same time, former U.S. President Donald Trump has threatened tariffs on Apple and pressured CEO Tim Cook to bring iPhone production to the U.S., a move experts consider nearly unfeasible.
China has posed challenges for Apple, especially after Huawei—whose smartphone business was hit hard by U.S. sanctions—made a strong comeback in late 2023 by releasing a new phone with a highly advanced chip once thought difficult for China to produce.
Since then, Huawei has aggressively launched new devices in China and has started re-entering international markets, successfully chipping away at Apple’s market share in the country.
Huawei’s sales increased by 12% year-over-year in the second quarter, Counterpoint Research reported.
It was the top smartphone brand in China by market share, with Vivo ranking second and Apple coming in third.