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Apple’s Surprise Recovery: iPhone Sales Rebound in China and Globally
After months of setbacks in the Chinese market, Apple has scored a major win. According to new data from Counterpoint Research, iPhone sales surged in May, reclaiming the top spot in China—a market critical to the company’s global performance. Even more impressive, Apple reported a 15% year-on-year increase in global iPhone sales during April and May, marking its strongest two-month period since the COVID-19 pandemic.
The recovery stems largely from improved sales in Apple’s two biggest markets: China and the U.S. Ivan Lam, a senior analyst at Counterpoint Research, emphasized that the company’s overall Q2 performance looks promising—though fluctuations still depend heavily on these two markets.
In China, Apple employed an aggressive discounting strategy, offering up to 2,530 usd (\~\$351) off the iPhone 16 models via e-commerce platforms. This tactic appears to have worked, with foreign-branded phone shipments reaching 3.52 million units in April, a slight year-over-year increase. Despite falling behind Chinese competitors like Huawei, Xiaomi, Vivo, and Oppo earlier this year, Apple has managed to claw back market share, even if temporarily.
While Q1 of 2025 saw Apple’s market share dip to 14.1%, placing it fifth in China, recent figures suggest a rebound. The discounts were a direct response to Q1 struggles, where Apple’s shipments fell by 9%, and Chinese brands saw gains—Xiaomi up 40%, Huawei up 10%.
Importantly,
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Apple’s rebound in China reveals several strategic layers worth unpacking. First, pricing flexibility—a tactic traditionally avoided by Apple—has become its new weapon of choice in highly competitive regions. The 2,530 usd discount wasn’t just a pricing adjustment; it was a market reentry strategy, allowing Apple to stay relevant among price-sensitive consumers while countering rising local brand loyalty to Huawei and Xiaomi.
This shift also signals that Apple is willing to temporarily sacrifice margins for market share—a move that could impact its long-term profitability but ensures its presence in crucial markets like China. From a macro perspective, it’s a calculated risk. Losing market share in China could mean diminished global influence, particularly with the country’s role in tech manufacturing and consumer behavior trends.
The post-pandemic consumer behavior landscape is another variable. As supply chains stabilize and consumer confidence returns, there’s pent-up demand for premium products—Apple is capitalizing on this wave, especially in emerging regions like India and the Middle East. By localizing supply chains and offering region-specific promotions, Apple has also managed to avoid some tariffs, giving it a competitive edge over brands like Samsung.
Another interesting layer is the brand psychology at play. Apple’s products carry aspirational value in many non-Western markets. Discounts in China don’t devalue the brand as they might in the West—instead, they make it more accessible to aspirational buyers, expanding the company’s long-term consumer base.
However, the competition isn’t standing still. Huawei’s resurgence, especially with its proprietary chips and operating system, is a real threat. If Apple continues to rely heavily on price cuts without innovating rapidly, it risks becoming a reactive rather than proactive player in the world’s largest smartphone market.
Moreover, the global regulatory environment—from tariffs to data laws—could disrupt Apple’s smooth trajectory. Flexibility and localization will be key if the company hopes to maintain momentum.
In summary, Apple’s short-term win in China is promising, but it’s the long-term strategy and balance between brand value, pricing, and innovation that will determine whether this rebound is a blip or the start of a new growth era.
🔍 Fact Checker Results
✅ Apple did regain the 1 smartphone position in China in May 2025, per Counterpoint Research.
✅ iPhone shipments globally rose 15% YoY during April and May.
❌ Apple’s gains were not uniform—Q1 losses in China were still significant despite the recent rebound.
📊 Prediction
If Apple maintains its aggressive regional discounting strategy while also releasing a feature-rich iPhone 17 this fall, it is likely to reclaim second place in the Chinese market by the end of Q3 2025. However, sustaining that position will require more than discounts—it will hinge on localized innovations, AI integration, and maintaining ecosystem loyalty in regions where Android competition is fast-evolving.
References:
Reported By: timesofindia.indiatimes.com
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