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Apple’s iPhone has made a remarkable recovery in China, recording its first year-over-year growth in two years during Q2 2025. The 8% sales increase marks a significant turnaround for Apple in the world’s largest smartphone market.
Apple recorded its first year-over-year iPhone sales growth in China in two years during the second quarter of 2025, marking a break from its consistent streak of downward trajectory. This comeback represents a crucial victory for Apple in a market that contributes 20% of global iPhone shipments.
Apple’s Chinese comeback relied heavily on aggressive pricing and government incentives. During China’s mid-year 618 shopping festival, major e-commerce platforms like JD.com and Tmall offered massive discounts:
Apple experienced year-over-year decline in sales and revenue from the third quarter of 2022 to the first quarter of 2025, except for one. This sustained decline was attributed to regulatory scrutiny, trade tensions, and increased competition from domestic brands like Huawei, Xiaomi, and Oppo.
China remains strategically crucial for Apple, representing 20% of total global iPhone shipments. The market’s importance extends beyond sales figures – it’s a key indicator of Apple’s ability to compete against increasingly sophisticated Chinese manufacturers.
Despite the positive Q2 results, Apple faces continued pressure from Huawei, which maintained market leadership with 12% growth. Local competitors have significantly evolved their designs and features while Apple has maintained its traditional approach.
The real test will come in Apple’s fiscal Q3 earnings report, expected by month-end, which will provide clearer insights into sustainable growth prospects in China and other key markets.
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