China — Apple’s new main market? iPhone outpaced local brands due to government subsidies, and the US faces tariff risk

Apple doesn’t seem to be too concerned about moving production to the US. Due to the favorable conditions in China, the iPhone is overtaking local brands in popularity.

According to investment bank Goldman Sachs, the Apple iPhone has outsold its competitors in the Chinese market for the first time since May 2024. The American company’s smartphones better withstood the overall Chinese market decline amid the sales season, and last June it joined the Chinese state subsidy program.

The report says that shipments of smartphones from Chinese brands slowed down faster than those from foreign brands in May. Taking into account the specifics of the local market, foreign brands should be understood mainly as iPhones, due to their huge market share. According to the bank’s analysts, who cite data from the China Academy of Information and Communication Technology (CAICT), May 2025 was extremely promising for Apple’s Chinese business.

Foreign-branded phones in China lag behind the local smartphone drop of 12%. Total smartphone shipments in China in May were down 22% year-on-year, but foreign (i.e. Apple) smartphones fell by only 10%. Analysts also note the role of discounts in the run-up to the 6.18 shopping period in China, which lasted from June 1 to June 18.

The bank notes that «compared to the previous month, shipments of foreign-branded phones in China were up 29% year-on-year, slightly below the seasonal average of +33% in the month (May 2021-2024 average)». Foreign smartphones grew in May 2025 compared to April 2025 and May 2024. These phones had 19% of the market share in May, which is 5% higher than the share in April and two points higher than the month before last.

Apple’s June entry into China’s rebate system means that consumers in Beijing and Shanghai are now eligible for discounts of up to 2000 yuan ($278) on select device models, including the iPhone, iPad, Apple Watch, and MacBook. To take advantage of the government subsidy in Shanghai, consumers must make a purchase at one of the eight stationary Apple Stores in the city. Residents of Beijing can receive the subsidy by ordering from Apple’s online store with a delivery address within the Chinese capital.

So far, China is giving Apple discounts, Donald Trump threatens the company with 25% duties if production is not moved to the United States Tim Cook has repeatedly emphasized It is extremely difficult, if not impossible, to do so. So the Chinese will get cheaper iPhones, and the company will get good sales in the country.

Sources: Wccftech, SCMP