Apple has reclaimed its position at the forefront of China’s smartphone market in the fourth quarter of 2025, driven by the remarkable success of the iPhone 17 series. This achievement is particularly noteworthy given the overall market contraction due to escalating prices and component shortages. Apple’s resurgence marks a significant turnaround from earlier in the year when it trailed behind domestic competitors.
Market Dynamics and Apple’s Ascendancy
According to Counterpoint Research, China’s smartphone shipments declined by 1.6% year-over-year in Q4 2025, contributing to a 0.6% decrease for the entire year. The surge in memory prices dampened consumer demand, adversely affecting most brands. In contrast, Apple defied this trend, with its shipments in China soaring by 28% year-over-year during the holiday quarter. This surge elevated Apple’s market share to 22%, positioning it as the market leader for the quarter.
Catalysts Behind Apple’s Growth
The iPhone 17 lineup was instrumental in this resurgence. Approximately 20% of Apple’s shipments in China during Q4 were attributed to the iPhone 17 series, with the Pro models experiencing the highest demand. Apple’s ability to rapidly scale up supply late in the year enabled it to meet the heightened holiday demand, a feat that some competitors struggled to achieve due to component shortages.
However, not all models shared this success. The iPhone Air, for instance, captured only a low single-digit share of Apple’s shipments in China. Its delayed launch and compromises between its ultra-thin design and feature set contributed to its sluggish start. Senior Analyst Ivan Lam noted, The late launch and trade-offs between thinness and the feature set resulted in a slow start for the iPhone Air.
Annual Rankings and Global Perspective
For the entire year, Huawei led the Chinese market with a 16.4% share, closely followed by Apple and vivo, each holding around 16%. Xiaomi and Oppo trailed with approximately 15% each.
On a global scale, IDC reported that smartphone shipments reached 1.26 billion units in 2025, marking a 1.9% year-over-year increase. Apple maintained its position as the world’s largest smartphone vendor, with global shipments totaling 247.8 million units, accounting for a 19.7% market share.
Future Outlook Amid Rising Costs
Looking ahead, Counterpoint anticipates a further 40 to 50% increase in memory prices in Q1 2026, with additional hikes expected in Q2. As costs escalate, manufacturers may reduce the production of low-end models and increasingly rely on subsidies to maintain profit margins.
Apple’s Strategic Maneuvers in China
Apple’s recent success in China is the culmination of strategic decisions and market adaptations. Earlier in 2025, Apple faced challenges in the Chinese market, with iPhone shipments dropping by 50% in March compared to the previous year. This decline was largely due to the Chinese government’s national smartphone subsidy program, which favored devices priced below CNY 6,000 (approximately $820), a range that excluded most of Apple’s offerings.
In response, Apple joined China’s subsidy scheme to boost sales. For the first time, customers in Beijing and Shanghai could purchase select iPhones, iPads, Apple Watches, and Macs at discounted prices directly from Apple’s online and retail stores. This move marked a strategic shift as Apple faced mounting pressure from rapidly growing Chinese rivals.
The iPhone 17’s Pivotal Role
The iPhone 17 series has been a game-changer for Apple in China. Reports indicate that the iPhone 17 outsold every major Chinese flagship model combined. By December 31, 2025, Apple had sold 15.57 million iPhone 17 units in China, surpassing the combined sales of all other Chinese flagship smartphones. This achievement underscores the iPhone 17’s appeal and Apple’s effective market strategies.
Global Implications and Future Strategies
Apple’s success in China has broader implications for its global strategy. The company’s ability to adapt to local market conditions, such as participating in subsidy programs and adjusting its product lineup, has been crucial. The iPhone 17’s success has also contributed to Apple’s best year in a decade, with the company expecting to set an all-time revenue record for both the December quarter and the iPhone category.
However, challenges remain. The global memory shortage and rising component costs are expected to impact the smartphone market in 2026. Apple’s planned changes in its release calendar, including the delayed launch of the lower-priced iPhone 18 until spring 2027, may also affect its market performance. Despite these challenges, Apple’s current momentum in China provides a strong foundation for navigating future market dynamics.
Conclusion
Apple’s resurgence in China’s smartphone market in Q4 2025, driven by the iPhone 17 series, highlights the company’s ability to adapt and thrive in a competitive and challenging environment. By aligning its strategies with market demands and leveraging its product strengths, Apple has not only reclaimed its position in China but also set the stage for continued global success.
