Apple’s China sales rebound with help from government consumer subsidies

Apple recorded an increase in sales in mainland China, Hong Kong, and Taiwan in the June quarter, aided by Beijing’s consumer subsidies, following a prolonged decline in the region due to intense competition and weak consumer spending.

According to Apple’s latest financial results released on Thursday, for the three-month period ending June 28, Apple’s revenue in China increased by approximately 4.4% year-on-year, rising from 14.73 billion US to 15.37 billion US.

CEO Tim Cook attributed the quarterly growth, which followed years of sales declines, partly to the Chinese government’s consumer subsidy program for electronic products.

“The government implemented certain subsidies that affected some of our products, not all of them, and I think that had an effect,” Cook said on the earnings call, adding: “This was the first full quarter that the subsidies were in place.”

According to Apple, sales of the MacBook Air, Mac Mini, and MacBook Pro recorded double-digit growth in China, and the MacBook Air became the country’s best-selling laptop.

China’s national subsidy program, launched earlier this year, aims to stimulate consumer spending by offering a 15% subsidy on purchases of smartphones, tablets, and smartwatches under 6,000 yuan (834 US).

In May, Apple cut iPhone prices by a third on China’s leading e-commerce platforms, making certain models eligible for the subsidy. The company officially joined the program in June, offering additional discounts through its retail channels.

As a result of these “well-timed and well-received” promotions, Apple recorded an 8% year-on-year increase in iPhone 16 sales in China during the June quarter, according to a research note published last month by consulting firm Counterpoint.

However, Counterpoint senior analyst Ivan Lam stated in July that iPhone sales in China in the second half of this year “could decline due to weak consumer spending and the aging of the iPhone 16 cycle, while the weak upgrade features of the iPhone 17 will not stimulate demand.”

The growing competition from domestic brands, especially Huawei Technologies, has further complicated Apple’s position in China.

In June, research firm IDC predicted a 1.9% decline in iPhone shipments in China in 2025 due to ongoing competition with Huawei and the country’s overall economic slowdown.

According to IDC, in the June quarter, Huawei reclaimed the top spot in the mainland China smartphone market for the first time in four years.

“Domestic brands are innovating in the areas of artificial intelligence, new form factors, and cross-ecosystems to enter Apple’s walled garden,” said Amber Liu, practice lead at Canalys, part of research firm Omdia.

“It is becoming even more important for Apple to strike a balance between a ‘perfect product’ and meaningful innovations to maintain its competitiveness in the dynamic mainland China market,” Liu added.