Apple Inc.'s (AAPL.US) price reduction strategy pays off, iPhone sales in China see first quarterly increase in two years.

According to Counterpoint Research, Apple Inc.'s iPhone sales in China saw their first increase in two years in the second quarter, as the tech giant tries to turn around its business in this key market. In the second quarter of 2025, iPhone sales in China increased by 8% compared to the same period last year. This is the first year-on-year growth in iPhone sales in China since the second quarter of 2023. The research firm noted that strong sales of the iPhone 16 Pro and Pro Max models are expected to lead to double-digit growth for the company. "Apple Inc.'s adjustment of iPhone prices in May came at the right time and was well received, happening a week before the 618 shopping festival," said Ethan Qi, deputy director of Counterpoint Research. Qi added that Apple Inc. topped the sales charts during the promotion period, with three iPhone models making it to the top half of the best-selling products list. The actual 618 promotional period remained flat compared to the same period last year, with most of the growth occurring in May. The performance recovery of Apple Inc. in the Chinese market has been welcomed by Wall Street, with the company's stock rising on Thursday. However, the tech giant's stock price has fallen by about 15% this year due to various unfavorable factors, including threats of tariffs by President Trump. Apple Inc. also faces fierce competition from Chinese tech giant Huawei, as Huawei continues to eat away at Apple Inc.'s market share in China. According to Counterpoint, Huawei is expected to achieve the highest growth rate among major brands and become the top brand in the Chinese market in the second quarter of 2025. Senior analyst Ivan Lam pointed out, "During the promotion period, Huawei's sales also saw significant growth. Huawei continues to maintain a strong position thanks to the loyalty of its core users, who tend to upgrade to Huawei's new products."