Apple recorded growth in iPhone sales in China in the second quarter of 2025 for the first time in two years, despite the muted overall market growth. Driven mainly by promotions for the iPhone 16 Pro and iPhone 16 Pro Max, the company’s high single-digit growth was outperformed by Huawei.
The iPhone sales in China jumped 8% year-over-year in Q2 2025, according to a preliminary report by Counterpoint Research. The main boost for Apple’s sales were price cuts and government subsidy programs in May.
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, Counterpoint Research, July 2025
Intense competition
Despite the iPhone 16 lineup’s success, Huawei is the leader in the Chinese market. The company recorded a 12% year-over-year sales increase and is the biggest brand by market share. Vivo takes the second place by market share, but recorded a 9% drop in sales compared to last year, and Apple is left in third place.
Image credit—Counterpoint Research
Huawei’s success is a reflection of the intense competition Apple is facing. The Chinese giant has been eating away at Apple’s market share in China, thanks to the loyalty of its core users who replace their old devices with new Huawei phones.
The iPhone 16e was a good move
One of the reasons for Apple’s growth was the iPhone 16e. The lower-cost model attracted some buyers from the very competitive midrange market and helped Apple expand beyond the premium segment.
Do you think the iPhone 16 series is good enough to beat Huawei?
Yes, iPhones are more practical
21.54%
Yes, because of Apple’s brand
3.08%
No, Huawei is more innovative
44.62%
No, iPhones are too expensive
30.77%
In the context of China’s slowing economy, consumers are increasingly wary of the price of premium devices. That’s why the national subsidy programs and aggressive promotions have become crucial for all smartphone companies.
On the bright side, Apple’s success in the second quarter is a sign of its dominance and ability to navigate the complexities of the premium Chinese market. I think the company’s biggest challenge will be keeping up with the competition from local brands. Devices like the Vivo X200 Ultra and the Huawei Mate XT demonstrate an ability to innovate that Apple seems to have lost, which could become a problem.
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