Apple Inc. has defied expectations with a 4.4% year-on-year sales growth in China, driven by strong Mac demand and aggressive iPhone discounts. This marks a significant turnaround after two years of declining sales in one of Apple’s most critical markets. The rebound highlights Apple’s ability to adapt to local market conditions and regain consumer confidence.
Apple China Sales: A Strong Comeback
Apple’s Greater China revenue rose to $15.4 billion in the June 2025 quarter, surpassing Wall Street’s expectations of $15.2 billion. This growth is particularly notable given the challenging macroeconomic environment and stiff competition from local brands. Key factors behind this rebound include:
- Strong demand for new Mac computers, especially among business and professional users.
- Aggressive discounting on flagship iPhone models, including a 30% price cut on the iPhone 16 Pro during the May 618 shopping festival.
- Renewed consumer confidence in Apple’s ecosystem, particularly among urban consumers.
Mac Demand Drives Growth
The Mac division played a pivotal role in Apple’s China rebound. Demand for Mac computers surged, contributing significantly to the 4.4% sales growth. This performance defies earlier concerns about market share losses due to competition and shifting consumer preferences.
iPhone Discounts Boost Sales
Apple’s strategic price cuts on iPhones, including the iPhone 16 Pro, led to an 8% year-on-year increase in iPhone sales in China. These discounts were particularly effective during major shopping events like the 618 festival, attracting both new and upgrading customers.
China Rebound Defies Expectations
Analysts had anticipated a modest recovery, but Apple’s performance exceeded forecasts. The company’s ability to adapt its pricing and product strategy to local market conditions proved crucial. Despite rising tariffs, which are expected to cost Apple an additional $1.1 billion next quarter, the company has shown resilience in a key market.
Apple Revenue Growth: A Global Perspective
While China contributed significantly, Apple’s global revenue grew by 10% year-on-year, reaching $94 billion. The company benefited from strong iPhone sales worldwide and a booming services segment. This growth underscores Apple’s ability to navigate challenging economic conditions and maintain its market leadership.
FAQs
Q: What drove Apple’s sales growth in China?
A: The growth was driven by strong Mac demand and aggressive iPhone discounts, particularly during the 618 shopping festival.
Q: How much did Apple’s China revenue increase?
A: Apple’s Greater China revenue rose 4.4% year-on-year to $15.4 billion.
Q: What role did iPhone discounts play in the rebound?
A: Discounts on flagship models like the iPhone 16 Pro contributed to an 8% year-on-year increase in iPhone sales in China.
Q: How did Mac sales perform in China?
A: Mac sales saw strong demand, particularly among business and professional users, playing a key role in the overall growth.
Q: What challenges does Apple face in China?
A: Apple faces challenges such as rising tariffs, stiff competition from local brands, and shifting consumer preferences.
