Apple iPhone Sales Rebound 8% in China Q2 After Two-Year Slump

China's smartphone market experienced only marginal growth in Q2 2025, with overall shipments rising just 1% year-over-year, but both Huawei and Apple outperformed the market. Huawei led with a 12% increase in shipments, driven by strong demand during the 618 shopping festival and government subsidy programs, while Apple saw an 8% rise in iPhone sales, marking its first quarterly growth in China in two years. Apple's rebound was attributed to substantial price discounts and its participation in China's national subsidy program, which boosted sales of the iPhone 16 series ahead of the 618 festival. Despite this recovery, analysts warn that Apple faces significant headwinds in the second half of 2025 due to weakening consumer spending, limited appeal of upcoming iPhone 17 upgrades, and intensified competition from domestic brands like Huawei and Xiaomi. The government subsidy program, which has spurred recent growth, may also be scaled back, potentially dampening future sales momentum. The competitive landscape remains fierce, with Chinese brands aggressively targeting the high-end market and leveraging loyalty among local consumers.