Apple (AAPL) Makes Gains in China Smartphone Market

Q2 2025 Smartphone Market Report

📊 China Smartphone Market – Q2 2025 Overview

• Overall smartphone shipments in China fell 2.4% year-over-year, highlighting weak consumer demand and reduced government subsidies.
• Huawei led the market with an 18.1% share, growing 17.6% YoY—buoyed by strong local support and successful flagship releases.
• Apple was one of the few international brands to post positive growth, with iPhone sales rising approximately 8% YoY, marking its first increase since Q2 2023.

🍎 Apple Highlights

• Sales Growth: Apple’s iPhone saw ~8% year-over-year growth, reversing a year-long decline in the Chinese market.
• Market Share Dip: Despite sales gains, Apple’s market share slipped 1.6% compared to Q2 2024, suggesting uneven model performance or pressure from rivals.
• Promotional Boost: Aggressive price cuts on the iPhone 16 Pro series and participation in government subsidy programs ahead of the “618” shopping festival played a key role in the rebound.

📉 Challenges Ahead

• Q3 Uncertainty:
  • Slowing consumer appetite.
  • Fewer promotional levers remaining.
  • The iPhone 16 lineup is aging without a near-term successor.
• Competitive Pressure: Domestic brands like Huawei and Xiaomi continue to gain traction, particularly in the premium and mid-tier segments.

📌 Summary Table

📝 Bottom Line:
Apple’s Q2 growth in China is a positive reversal after a year of decline, thanks largely to pricing moves and seasonal promotions. However, the road ahead looks challenging as competition heats up and consumer demand cools heading into Q3. Sustaining momentum may depend on the iPhone 17 launch and strategic pricing.