Apple $AAPL’s iPhone sales in China experienced single-digit growth during the second quarter of this year after falling since the end of 2024, research found.
The tech giant experienced 4% year-over-year growth last quarter in iPhone sales in China, claiming 15% of the country’s smartphone market with 10.1 million in iPhone shipments, according to a report published Monday by Canalys, a technology market analyst firm.
However, even with growth for the first time this year, Apple is still trailing behind its biggest Chinese competitor Huawei.
Huawei claimed top spot in China’s smartphone market with 18% of market dominance, amounting to 12.2 million smartphone shipments in the second quarter, showing 15% year-over-year growth. In the first quarter, Xiaomi was ahead of Huawei before declining this quarter — although still ahead of Apple.
Not only is Apple seeing significantly less growth than Huawei, it also falls behind vivo, OPPO, as well as Xiaomi, ranking fifth in the country. Based on the report, Apple hasn’t been on top in China since the fourth quarter of 2023.
“In Q2, Apple strategically adjusted its pricing for the new iPhone 16 series, to drive demand during the shopping season. However, its early momentum was hampered by national subsidy eligibility issues due to its higher price points,” said Canalys practice leader Amber Liu.
Even with growth from Apple and Huawei, China’s smartphone market dropped 4% year-on-year this quarter.
Apple is set to report its third quarter earnings on Thursday in a posting that could show shareholders just how much impact China has had on its sales last quarter amid tariff hits and rising competition.