The data shows that the base model iPhone 17 nearly doubled its sales in China compared to the iPhone 16 during the same launch period. Overall, the model recorded a 31% sales increase across both countries.

“The base model iPhone 17 is very compelling to consumers, offering great value for money,” said Mengmeng Zhang, senior analyst at Counterpoint. “A better chip, improved display, higher base storage, selfie camera upgrade – all for the same price as last year’s iPhone 16.”

What’s Behind the Surge

Counterpoint attributes the outstanding start to a series of hardware upgrades that give the iPhone 17 more value without a higher price. 

The device comes with a new A19 Bionic chip, a brighter OLED display, 256GB base storage, and an upgraded 12MP front camera with enhanced low-light performance.

These improvements appear to have struck a chord with users who skipped upgrading last year, with many seeing the iPhone 17 as a stronger, longer-lasting option. 

Analysts also noted that carrier subsidies and trade-in offers boosted early adoption, especially among younger buyers and urban professionals.

Earlier in 2025, Apple faced weak demand in China as competition from Huawei’s Mate 60 Pro and other homegrown brands heated up. The iPhone 17’s strong early showing now shows a potential rebound in market share.

Stores in Beijing, Shanghai, and Shenzhen reportedly saw long queues and sell-outs for the base and Pro Max models after the global launch in September 2025. Within a month, Apple had rolled out the series in over 40 countries, marking one of its fastest international expansions.

In short, the iPhone 17’s combination of noticeable performance upgrades, unchanged pricing, and a more consumer-friendly purchase model has given Apple the boost it needed to regain its footing in key markets.

This is its best two-month performance since the COVID-19 era and the profits are largely tied to renewed demand in China and the United States, its two largest and most volatile markets.

The latest data from Counterpoint Research show Apple reclaiming the top spot in China for May. But it didn’t happen by chance. 

The company rolled out aggressive discounts, as high as 2,530 yuan ($351), across e-commerce platforms in China, a move seen as necessary to compete with a fast-rising Huawei and other domestic rivals. Despite the bump in sales, this pricing strategy signals that Apple is under pressure.

“Q2 iPhone performance looks promising at the moment, but as always, swings either way are dictated by two markets – the U.S. and China,” said Ivan Lam, senior analyst at Counterpoint Research.

Apple is manoeuvring around geopolitical and economic challenges. In response to former President Trump’s proposed 25% tariff on non-U.S.-made iPhones, Apple rerouted 97% of its India-produced iPhones to the U.S. between March and May. This tactical shift helped shield the company from higher import costs, for now.

Still, the Chinese government has excluded Apple from some public sector subsidies, and Huawei is regaining the top place in the local market. Analysts believe this could drive Apple’s shipments down in 2025, even if the broader Chinese smartphone market grows by an estimated 3%.

The impact of global trade shifts isn’t limited to distribution routes. High tariff issues are beginning to affect product pricing. Counterpoint warns that Apple’s iPhone 17 series, expected next year, could come with higher price tags as production costs jump by an estimated $900 million due to U.S. tariffs.

Globally, Counterpoint has revised its 2025 smartphone shipment growth forecast to 1.9%, down from an earlier projection of 4.2%. The revision shows the worries over tariff disruptions and economic instability across major markets.

Despite short-term wins, Apple is still facing challenges. Between the strategic rerouting of production, deep discounts, government policy shifts, and growing local competition, the company is walking a tightrope.

And while sales are up today, sustaining that growth will depend on how well it can keep both the Chinese and American markets on its side.