Counterpoint: Analysis of iPhone Sales in China for Q2
8% Increase Year-on-Year... First Growth in Two Years
Impact of 6.18 Shopping Festival... Huawei Remains Strong
A recent survey has found that Apple’s iPhone has seen improved sales performance in the Chinese market for the first time in two years. On July 4 (local time), Yonhap News, citing U.S. business media outlet CNBC, reported, "According to market research firm Counterpoint Research, iPhone sales in China in the second quarter of this year increased by 8% compared to the same period last year." This marks the first growth since the second quarter of 2023.
The strong sales performance is attributed to two main factors: Apple offered discounts on the iPhone 16 models during a major promotional event held by Chinese e-commerce companies in May, and the company expanded trade-in programs for certain models. Counterpoint explained, "Apple adjusted iPhone prices in May, just one week before the '6·18 Shopping Festival,' and consumer response was positive." The '6·18' event is a large-scale discount festival involving major Chinese online retailers, which this year lasted for over a month starting from May 13. CNBC assessed, "Apple's return to growth in China is welcome news for investors, especially as the company has faced various challenges and its stock price has fallen by about 15% this year."
However, local companies such as Huawei continue to dominate the Chinese smartphone market. Huawei’s smartphone sales in the second quarter of this year increased by 12% year-on-year, maintaining its position as the market leader. Ivan Lam, a senior analyst at Counterpoint, stated, "Huawei is boosting user loyalty by replacing older models with new product launches." In the market, the delayed introduction of artificial intelligence (AI) features in iPhones is cited as a factor diminishing competitiveness, especially when compared to Chinese products that have already incorporated some AI capabilities.
Previously, there were reports that Apple is changing its iPhone launch strategy to better respond to the Chinese market. In May, IT media outlet The Information reported, "Unlike its previous approach of releasing all new iPhones in September each year, Apple is planning to stagger launch timings starting next year, aiming to maintain new product momentum throughout the year." According to the report, in the second half of next year, Apple will first release its flagship models?the iPhone 18 Pro and Pro Max?along with the newly introduced ultra-thin model 'iPhone 18 Slim' and its first foldable iPhone. Subsequently, the standard iPhone 18 and the lower-priced iPhone 18e are expected to be released separately in the spring of 2027, about six months after the launch of the Pro models.
Apple’s decision to stagger its release schedule is interpreted as an effort to maximize marketing impact and streamline production timelines. Kuo Mingchi, an analyst at Taiwan's TF International Securities, analyzed, "Apple’s dual-phase iPhone launch strategy is aimed at responding to the Chinese market," adding, "Since many competitors release new products in the first half of the year, Apple is also seeking to directly compete during that period."
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