Apple iPhone 16 Sales Surge in China’s Slowing Market Amidst Economic Challenges

Apple has managed to achieve growth in China’s smartphone market despite overall stagnation. In the second quarter of 2025, the company experienced high single-digit growth, mainly driven by attractive promotions and the popularity of the iPhone 16 Pro and iPhone 16 Pro Max. Reports indicate that Apple’s price reductions in May played a crucial role in enhancing performance, even amid modest overall market growth.

Although the overall sell-through for smartphones in China is expected to show slight year-over-year increases, major brands like Huawei remain competitive, with projections showing Huawei leading for the quarter. During the pivotal 618 shopping festival, consumer spending remained stagnant; however, sales improved in May due to national subsidy programs. Apple’s efforts aligned well with this trend, as three of its iPhone models ranked among the top sellers during the shopping period.

Nonetheless, analysts caution that growth may decelerate in the latter half of 2025 if planned cuts to subsidies reduce consumer spending incentives. The introduction of the iPhone 16e earlier in 2025 has further boosted Apple’s performance by attracting budget-conscious consumers in the competitive midrange market. This strategy has allowed Apple to reach beyond its premium segment and increase overall sales.

However, with a slowing economy, consumers are now more cautious about purchasing high-end goods, emphasizing the need for subsidies and promotions to drive sales. Looking ahead, Apple faces intensifying competition from brands like Huawei, Xiaomi, Oppo, and Vivo. To sustain its premium image while remaining competitive on pricing, Apple has had to adjust its strategy, including cutting iPhone 16 prices ahead of significant sales periods.

While subsidies have supported demand, analysts warn that a reduction in these incentives might expose weak underlying demand. Apple must navigate this challenging landscape while continuing to expand in smaller cities and balancing its premium branding with broader market appeal.