While China’s smartphone market cools, Apple has managed to buck the trend. The company recorded high single-digit growth in the second quarter of 2025, driven largely by the success of its iPhone 16 lineup. Strategic price cuts and national subsidy programs played a key role in encouraging consumers to upgrade.
Smart Strategy and Strong Models
Apple timed its discounts ahead of the 618 shopping festival, beating out rival offers. This early move boosted May sales, even though June festival numbers stayed flat. The iPhone 16 Pro and Pro Max were especially popular, landing among the top-selling devices during the period.
Importantly, the launch of the iPhone 16e helped Apple reach a broader customer base. This budget-friendly option attracted value-conscious buyers and strengthened Apple’s presence in the midrange segment.
Navigating Fierce Competition
Apple faces intense rivalry in China. Local brands like Huawei, Xiaomi, Oppo, and Vivo are pushing hard with competitive pricing and attractive features. Huawei, in particular, is regaining lost ground after years of U.S. sanctions.
To stay ahead, Apple has expanded local manufacturing and increased its retail presence in China. These efforts not only reduce import costs but also strengthen customer loyalty in a fast-changing market.
What Lies Ahead
Although Apple’s Q2 performance was strong, analysts warn of challenges. Government subsidies that fueled sales earlier this year may be reduced, which could slow demand in the second half of 2025. Additionally, as competition heats up, Apple will need to find new ways to maintain its edge.
Despite these hurdles, Apple’s approach—mixing premium branding with smart pricing—continues to deliver results in one of its most critical markets. However, long-term growth will depend on how well it adapts to China’s shifting economic and consumer trends.
