Apple's price reduction strategy proves effective as iPhone sales in China see their first increase in two years
Apple's iPhone sales in China achieved an 8% year-on-year growth in the second quarter of 2025, marking the first increase in two years. Counterpoint Research pointed out that strong sales of the iPhone 16 Pro and Pro Max drove this growth. Apple's price reduction strategy in May is considered successful, with its products performing well during the promotion period. Although Apple's stock price has fallen about 15% this year, the market welcomes its performance recovery. Huawei, on the other hand, faces fierce competition in the Chinese market and is expected to become the number one brand in market rankings
According to Counterpoint Research, Apple Inc. (AAPL.US) achieved its first growth in iPhone sales in China in the second quarter in two years, as the tech giant attempts to turn around its business situation in this major market. In the second quarter of 2025, iPhone sales in China increased by 8% compared to the same period last year. This marks the first year-on-year growth in iPhone sales in China since the second quarter of 2023. The research firm noted that due to strong sales of the iPhone 16 Pro and Pro Max models, the company is expected to see double-digit high growth.
"The timing of Apple's price adjustment for the iPhone in May was just right and received positive feedback, as it was a week ahead of the 618 shopping festival," said Ethan Qi, deputy director of Counterpoint Research. Qi added that Apple topped the sales charts during the promotional period, with three of its iPhone products successfully making it to the top half of the best-selling products list. The actual 618 promotional period remained flat compared to the same period last year, with most of the growth occurring in May.
Apple's performance recovery in the Chinese market has been welcomed by Wall Street, with its stock rising on Thursday. However, the tech giant's stock price has fallen about 15% this year, as the company faces numerous adverse factors, including tariff threats from President Trump.
Apple is also facing fierce competition from Chinese tech giant Huawei, which is continuously eating into Apple's market share in China. According to Counterpoint, Huawei is expected to achieve the highest growth rate among major brands and become the top brand in the Chinese market in the second quarter of 2025.
Senior analyst Ivan Lam pointed out, "During the promotional period, Huawei's sales also saw significant growth. Huawei continues to maintain a strong position due to the loyalty of its core users, who tend to upgrade their old phones to Huawei's new models."
