Apple's China iPhone sales jumped 22% in month after iPhone 17 launch
![Item 1 of 2 A woman uses her smartphone inside the Apple store in Beijing's Sanlitun area as the new iPhone 17 series smartphones go on sale in Beijing, China September 19, 2025. REUTERS/Maxim Shemetov/File Photo [1/2]A woman uses her smartphone inside the Apple store in Beijing's Sanlitun area as the new iPhone 17 series smartphones go on sale in Beijing, China September 19, 2025. REUTERS/Maxim Shemetov/File Photo Purchase Licensing Rights, opens new tab](/_next/image?url=https%3A%2F%2Fwww.reuters.com%2Fresizer%2Fv2%2FCNNVDWXTNVMKXFGAYZXVDDIQ3M.jpg%3Fauth%3D503558c6cebad627ea152a4c0428a991e43bc594ec8633d300cf1598b8ee1967%26width%3D1200%26quality%3D80&w=1920&q=75)
News Summary
Sales of iPhones in China surged by 22% year-over-year in the first month following the launch of the iPhone 17 series, according to a private survey released Friday by research firm Counterpoint, even as the broader market softened. The new iPhone 17 lineup accounted for nearly four-fifths of Apple's (AAPL.O) smartphone unit sales to consumers in China during the period since its September 19 launch. This performance contrasts sharply with the iPhone 16 series, which saw a 5% decline in sales during its first month post-launch in September 2024. The iPhone 17 launch attracted hundreds to Apple's Beijing flagship store, signaling continued brand enthusiasm despite intense competition from Xiaomi and Huawei. Counterpoint also noted that China's overall smartphone market remained weak, with third-quarter sales down 2.7% year-on-year due to subdued consumer demand.
Background
China represents one of Apple's most critical markets globally, serving as a significant growth driver for its products, particularly the iPhone series. However, in recent years, Apple has faced increasing challenges in China due to a slowing economy, cautious consumer spending, and intense competition from domestic brands like Huawei and Xiaomi. Specifically, the broader Chinese smartphone market experienced a 2.7% year-on-year decline in the third quarter of 2025, as reported by Counterpoint, indicating overall weak consumer demand. The previous generation, iPhone 16, even saw a 5% sales drop in its first month after launching in 2024, highlighting the pressures Apple has been contending with and the volatility of consumer sentiment in this key market.
In-Depth AI Insights
What does Apple's strong iPhone 17 performance in China truly signify, given the overall weak market conditions? - It indicates that Apple's brand resilience and pricing power in China's premium smartphone segment remain robust, allowing it to defy broader market trends. Consumer loyalty to Apple products and willingness to pay a premium for innovation and brand experience have not diminished. - The successful launch cycle management and product innovation of the iPhone 17 appear to have effectively stimulated consumer upgrades, possibly due to more compelling features or design updates compared to its predecessor (iPhone 16). - Despite the overall decline in the Chinese smartphone market, the premium segment might be exhibiting greater resilience, or even a trend where consumers consolidate towards more reliable, brand-strong products. How might this performance impact the long-term competitive landscape with local rivals like Huawei and Xiaomi in the Chinese market? - Apple's success may prompt Huawei and Xiaomi to further intensify their investment in high-end product R&D and brand building, escalating competition in the premium segment and potentially driving up marketing and R&D costs. - While Apple gains a short-term advantage, local competitors might leverage nationalistic sentiment and narratives of technological self-reliance to challenge Apple's market share in the long run, especially as technological barriers are gradually overcome. - Apple will need to continuously innovate and adapt to unique Chinese consumer preferences to maintain its leading position, as relying solely on brand power might not be sufficient to withstand the rise of local brands. Considering the ongoing trade policies of the incumbent Trump administration, what are the potential implications of Apple's successful sales in China for US-China tech relations? - Apple's continued success in the Chinese market could, to some extent, alleviate pressure for US-China tech decoupling, as it represents a significant economic intersection, particularly in terms of employment and supply chains. - However, this success could also serve as potential leverage for the Trump administration to further pressure Apple to move its supply chain out of China, aiming to reduce economic dependence. - Apple's strong performance in China might be seen as proof of its global strategic flexibility, but geopolitical risk remains a persistent headwind, and any sudden policy shift could significantly impact its operations and sales in the country.