After a long time crisis, Apple’s business in China is suddenly booming again. Last week, the tech giant said in its latest earnings report that revenue in the country grew 38 percent year-over-year in the most recent quarter, largely driven by rising demand for iPhones. The rebound comes after Apple’s sales in China declined for 18 consecutive months between 2024 and early 2025.
On a call with analysts, CEO Tim Cook said Apple set a modern record for iPhone upgrades among Chinese customers and saw double-digit growth in users switching from other operating systems to iOS. “Overall, a great neighborhood in China. We couldn’t be happier with it,” Cook concluded in his distinctive monotone voice.
Apple’s fantastic results surprised many observers of the Chinese smartphone market. In recent years, homegrown brands such as Huawei and Xiaomi have eroded market share from Apple by releasing high-end, feature-packed devices that directly compete with the iPhone. Huawei, for example, stunned the tech industry by releasing a $2,800 triple-screen smartphone in September 2024, well before competitors released similar products.
The most striking thing about Apple’s return to China is the way it has managed to do so. Instead of trying to compete by developing flashier technology, it simply released a modern iPhone that is both powerful and competitively priced, experts tell WIRED. Even though there are devices from local brands that technically have better cameras and more sophisticated AI capabilities (Apple Intelligence is not yet available in mainland China), many buyers still chose Apple’s iPhone 17 line.
This suggests that Chinese consumers still care more about Apple’s brand strength and design features than marginal technical improvements. “It’s a good story if you’re Apple. It’s the same old story if you’re not Apple,” says Gerrit Schneemann, senior analyst covering Apple at Counterpoint, a global technology research firm.
But Apple’s product strategy wasn’t the only crucial factor here. The price of the iPhone 17 was low enough to make it eligible for a massive electronics subsidy program launched by the Chinese government last year. To stimulate the economy, Beijing spent about $43 billion in 2025 to subsidize domestic purchases of electronics, home appliances and cars. Smartphones sold for less than RMB 6,000 (about $860) were eligible for a 15 percent discount. Apple has listed the iPhone 17 in China for RMB 5,999, providing price-sensitive buyers the opportunity to take advantage of the government’s policy.
None of these explanations indicate that Apple’s Chinese competitors are doing anything wrong. Guo notes that domestic brands have also seen significant growth recently. Costly flagship models from brands such as Xiaomi, Vivo and Oppo “remained strong across the board – with even more noticeable growth seen in the more expensive Pro/Pro Max variants,” says Guo.