New data from Counterpoint Research shows that demand is still weak across China. Government subsidies introduced in January have not done much to change that, making individuals hold back on spending, and phone makers are feeling it.

Apple, however, managed to push ahead, discounts on e-commerce platforms helped, and the base model of the iPhone 17 qualified for state subsidies. That combination made its devices more attractive at a time when buyers are prudent.

There is also the question of cost, with memory chip prices surging and putting pressure on manufacturers.

While others are reacting by raising prices, Apple is taking a different route. Its control over its supply chain gives it room to absorb some of the extra cost instead of passing it on to customers.

Counterpoint explained, “Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share.”

Competitors are not in the same position. OPPO and vivo have already increased prices on some existing models this month. The adjustments are not just covering costs, but are also testing how much consumers are willing to pay before new devices arrive later in the year.

Meanwhile, Huawei is leaning on domestic suppliers who tend to charge less than international chipmakers, giving Huawei some breathing space.

That advantage could help it compete more aggressively, especially in the low- and mid-range segments.

The pressure is not going away soon. Memory costs are still high, and manufacturers are being forced to choose between protecting margins, keeping prices stable, or pushing shipments.

Hence, the Chinese market is expected to stay soft through March, April and May. There may be some lift in early June when the country’s “618” shopping festival begins.

That period usually brings heavy discounts and a spike in sales, although any rebound may be temporary.

As it stands, most brands are adjusting to a tougher market, while Apple is using the moment to hold its ground in the China smartphone market, and possibly take more share, while sales grow.

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.

The company shipped 10.8 million iPhones in the third quarter of 2025, up 0.6% from a year earlier, securing a 15.8% share of the Chinese smartphone market.

In the overall market, however, total smartphone shipments in China fell by 0.6% year-on-year to 68.4 million units, though the decline was less steep than the 4% drop recorded in the second quarter. This reveals a gradual recovery in the world’s largest smartphone market.

Apple ranked second during the period, behind Vivo, which led with 11.8 million shipments, a 7.8% decline compared to last year. Huawei followed closely with 10.4 million units, down 1%, while Xiaomi shipped 10 million, a 1.7% drop. Again, Apple was the only brand among the top three to record any shipment growth.

Will Wong, senior Smartphone Analyst at IDC, attributed Apple’s resilience to the success of its latest model. “Apple’s value-for-money base model iPhone 17 successfully captured value-seeking customers, helping it to achieve slight growth and a higher ranking than the previous quarter,” he said.

The strong performance of the iPhone 17 base model shows Apple’s ability to appeal to both premium and budget-conscious consumers. In a price-sensitive market where buyers are cautious with spending, Apple’s strategy of offering a more affordable variant without compromising quality has paid off.

The launch of the iPhone Air in October, following regulatory approval for SIM support, is expected to provide an additional lift to Apple’s sales in the fourth quarter. Analysts also predict an overall improvement in China’s smartphone market, driven by the release of new flagship devices and renewed consumer demand.

Globally, smartphone shipments grew 2.6% year-on-year in the third quarter, supported by strong demand for foldable and AI-powered devices. Apple’s global shipments reached 58.6 million units, representing 18.2% of the worldwide market, bolstered by record iPhone 17 pre-orders.

Apple is steadily gaining back its ground in China, despite economic challenges and fierce competition, revealing the company’s ability to adapt its product strategy and maintain strong consumer loyalty in one of its most important markets, thereby improving smartphone shipment.

Official data from the China Academy of Information and Communications Technology (CAICT) revealed that shipments of foreign-made smartphones reached 3.52 million units, barely above the 3.50 million recorded in the same period last year.

But Apple, the top foreign company in China’s smartphone market, is walking a tightrope. 

The modest growth in April followed a difficult first quarter where the tech giant’s iPhone sales in the country fell by 9%. 

Apple is being squeezed from all sides, by more agile Chinese brands and budget-conscious consumers who are opting for devices with similar performance but lower price tags.

To hold its ground, Apple has turned to discounting. Earlier this month, major Chinese online retailers slashed prices on the latest iPhone 16 models by as much as 2,530 yuan ($351). The aim was to stop the loss and recapture consumer interest before it slides further.

The change in consumer preference is obvious. More Chinese buyers are choosing homegrown brands like Huawei, Xiaomi, and Oppo, which now offer high-performance features at a fraction of Apple’s price. 

The days when the Apple logo alone guaranteed authority in China’s premium smartphone segment are slipping away. What we’re seeing is a redefinition of brand loyalty.

The April figures may provide a temporary growth for Apple, but a year-on-year increase of just 20,000 units is hardly a sign of resurgence, but a warning.

Apple’s gamble on price cuts is a short-term solution, we can’t tell if it will translate into sustained growth. A Beijing-based analyst said, “Apple’s value proposition is eroding in a market that no longer views premium as exclusive.”