Apple just pulled off a stunning reversal in China, posting 38% revenue growth in its latest quarter after 18 straight months of decline. The comeback wasn't fueled by breakthrough tech - the company simply priced the iPhone 17 at 5,999 RMB to qualify for Beijing's massive $43 billion electronics subsidy program, undercutting premium rivals like Huawei and Xiaomi at the exact moment millions of Chinese users were ready to upgrade from their aging iPhone 13 devices.
Apple is thriving in China again, and the tech giant didn't need folding screens or advanced AI to pull it off. The company reported a 38% revenue surge in China during its latest earnings call, driven almost entirely by iPhone demand that CEO Tim Cook called a "great quarter" for the region.
The turnaround marks a dramatic shift from the previous year and a half. Between 2024 and early 2025, Apple's China sales had declined for 18 consecutive months as domestic competitors like Huawei and Xiaomi gained ground with feature-rich flagship devices. Huawei even released a $2,800 trifold smartphone in September 2024, beating global rivals to market with the innovative form factor.
But Apple's comeback strategy reveals something crucial about the Chinese market - consumers still value brand prestige and ecosystem integration over marginal technical improvements. According to Wired, the company set new records for iPhone upgrades and saw double-digit growth in Android switchers, despite Apple Intelligence remaining unavailable in mainland China.
The iPhone 17's success hinged on strategic pricing more than innovation. Apple listed the baseline model at exactly 5,999 RMB (about $860), just under the 6,000 RMB threshold for Beijing's electronics subsidy program. That timing proved critical - the Chinese government spent roughly $43 billion in 2025 subsidizing purchases of electronics, appliances, and cars to stimulate the economy, offering up to 15% discounts on qualifying smartphones.
"Apple's last peak sales period came with the iPhone 13 series, and after a span of three to four years, its existing users have gradually entered the upgrade cycle this year," Arthur Guo, a Beijing-based research manager at , told Wired. The convergence of government incentives and natural upgrade cycles created perfect conditions for Apple's resurgence.
