Apple’s iPhone Shipments in China Jump 8% YoY: Discounts & Trade-Ins Fuel a Comeback
- How Did Apple Turn Around Its Slumping China Sales?
- Why Did Trade-In Programs Move the Needle?
- Who’s Still Outselling Apple in China?
- What’s the Catch Behind Apple’s China Recovery?
- Can Apple Sustain This Momentum?
- Q&A: Your Burning Questions Answered
Apple’s iPhone shipments in China ROSE ~8% year-over-year in Q2 2025, marking its first growth since early 2023. Aggressive discounts during May’s 618 shopping festival and boosted trade-in credits sparked demand, but Huawei’s resurgence and geopolitical risks loom. Here’s the full breakdown of Apple’s rollercoaster ride in the world’s largest smartphone market. ---
How Did Apple Turn Around Its Slumping China Sales?
After a brutal 15-month decline, Apple finally saw a glimmer of hope in China. Counterpoint Research data reveals iPhone shipments grew 8% YoY in Q2 (April–June 2025), thanks to two clever moves:on iPhone 16 models andfor older devices. During Alibaba’s 618 festival, some iPhone 16 variants were priced at 5,299 yuan ($740)—$230 below Apple’s official tag. "The timing was perfect," notes Counterpoint’s Ethan Qi. "Apple’s price cuts landed right before the 618 frenzy, where shoppers expect bloodbath-level deals."
Why Did Trade-In Programs Move the Needle?
Apple quietly upped trade-in credits by 15–20% for aging iPhones in China. While seemingly minor, this nudged fence-sitters to upgrade. "Imagine holding onto your iPhone 11 for five years," says a BTCC analyst. "Suddenly, Apple offers enough credit to make a new iPhone 16 cost just 3,500 yuan ($490). That’s psychological warfare." The strategy paid off—trade-ins accounted for 30% of Q2 sales, per insider estimates.
Who’s Still Outselling Apple in China?
Despite the rebound, Apple rankedin market share, trailing Huawei (1st) and Vivo (2nd). Huawei’s 12% YoY sales surge—powered by its homemade Kirin chips and nationalist appeal—stung. "Huawei users are cult-like," admits Counterpoint’s Ivan Lam. "They’ll trade last year’s Pura 70 for the new model like clockwork." Meanwhile, Apple’s "discount-driven growth" raises eyebrows. "You can’t coupon your way to dominance forever," quips a Shanghai-based retailer.
What’s the Catch Behind Apple’s China Recovery?
The comeback comes with asterisks:
- Short-term sugar rush: 618 promotions artificially inflated Q2 numbers; Q3 demand may cool.
- Huawei’s shadow: With 5G chips back, Huawei regained its "big brother" status in China.
- Macro headaches: Weak consumer spending and US-China tensions persist.
Can Apple Sustain This Momentum?
Analysts doubt it—unless Apple deploys heavier artillery:
- Deeper local partnerships: Collaborate with Tencent or ByteDance on China-exclusive features.
- Faster innovation cycles: Huawei releases 3–4 flagship models yearly; Apple does one.
- Political maneuvering: Lobby against potential Trump-era tariffs if he wins the 2024 election.
Q&A: Your Burning Questions Answered
What caused Apple’s shipment growth in China?
The 8% boost came from aggressive May discounts (e.g., iPhone 16 at 24% off) and juiced-up trade-in values, tapping into pent-up demand during the 618 shopping festival.
How does Huawei’s resurgence impact Apple?
Huawei’s 12% sales growth and nationalist appeal ("Made in China" chips) make it Apple’s top rival. Its users upgrade more frequently, creating sticky competition.
Are iPhone discounts sustainable?
Unlikely. Margins will bleed if Apple relies on perpetual markdowns. Analysts suggest trade-in innovations (e.g., Android crossovers) or localized services as alternatives.
