Foreign brand sales experiencing growth, with Apple among the beneficiaries, due to China's trade-in program.
**China's Subsidy Campaign Boosts Apple Sales in Second Quarter of 2025**
Apple has reported a significant improvement in sales in the Chinese market, marking the first quarter of positive growth for the tech giant in two years. The surge in sales can be attributed to Apple's aggressive discount campaigns in May, which were bolstered by China's national trade-in programme.
The Chinese government is running a consumption-boosting subsidy campaign, part of a broader 300 billion yuan ($40.9 billion) trade-in program. As of June 2025, the central government has allocated 162 billion yuan to local governments, with the remaining funds set to be issued in an orderly manner at a stable pace. However, some cities have suspended trade-in subsidies earlier than expected, leading to concerns about the program's continuation.
Apple's discount campaigns in May were aimed at boosting sales during the "618" shopping festival, a significant event in China. The price cuts for the iPhone 16 series, introduced ahead of the festival on June 18, were a key factor in the aggressive discount campaigns. The report on the sales growth was released by Counterpoint Research on Thursday.
The sales growth of iPhones in China in the second quarter of 2025 saw an 8% year-on-year increase, a positive turnaround for Apple's sales in the country. The national trade-in programme in China played a significant role in Apple's discount campaigns, providing a substantial boost to the tech giant's sales.
Global brands, including Apple, have seen an increase in sales in China as a result of the consumption-boosting subsidy campaign. The program has driven 1.1 trillion yuan in sales as of May 2025, providing a substantial boost to several major multinationals.
While the subsidy program is expected to be scaled back in the latter half of 2025, China has ample fiscal room to potentially reinforce its trade-in initiatives later in the year if consumer demand remains strong. This suggests that while some programs may be ending, there could be opportunities for future support if needed.
The uptick in sales for Apple in China is a promising sign for the tech giant, as it continues to navigate the competitive market in the world's largest smartphone market. The success of the discount campaigns during the "618" shopping festival is a strategic move that Apple may look to replicate in future sales events.
- The Chinese government's consumption-boosting subsidy campaign, part of a broader trade-in program, has benefited Apple's finance and business, providing a substantial boost to sales of the tech giant's products, including the iPhone 16 series.
- The economic growth in China, fueled by consumer support via subsidies, has positively impacted various industries, including technology, and has seen significant gains for multinational businesses like Apple.
- China's strategic initiatives, such as the consumption-boosting subsidy campaign, have influenced the market dynamics of industries like technology and finance, presenting potential opportunities for companies to remain competitive in the world's largest smartphone market.
