Apple Inc.'s (NASDAQ:AAPL) latest iPhone lineup is fueling a rapid rebound in China, signaling that premium demand remains resilient despite broader smartphone market weakness.
Premium iPhone Demand and Upgrade Cycle
Apple posted a strong start for its latest flagship smartphones in China. The iPhone sales jumped 22% year-over-year in the first month after the iPhone 17 series launch, even as the broader market continued to slump.
Counterpoint Research said the iPhone 17 lineup drove nearly 80% of Apple's smartphone sales in China since its September 19 debut, reversing the 5% decline seen in the first month of last year's iPhone 16 rollout, Reuters reported on Friday.
Also Read: Apple iPhone 17 Pro, Pro Max Ship Times Stay Stable Globally: Analyst
Apple's iPhone 16 held its position as the world's best-selling smartphone for a second straight quarter in the second-quarter of 2025, widening its lead over the iPhone 16 Pro models, which ranked next, as per Counterpoint.
Apple also pushed the iPhone 16e into the top 10 thanks to strong demand in Japan and the U.S.
Analyst Commentary
The U.S. Big Tech giant noted strong demand for the iPhone 17 series as loyal users upgrade to premium models, driving a robust replacement cycle heading into 2025 as per JP Morgan analyst Samik Chatterjee.
The analyst’s latest survey showed more consumers plan to buy a new iPhone this year, with performance, camera upgrades and design improvements powering interest — not AI features.
Premium models dominate demand, led by the iPhone 17 Pro Max, as high-end devices capture 72% of intended purchases versus 64% a year ago, Chatterjee noted.
Upgrade intent is rising in the U.S. and remains strong in China, while fewer Android users plan to switch to iOS compared to last year, he added.
Global Smartphone OS Market Shifts
Global smartphone sales increased by 5% in the second quarter of 2025, resulting in slight shifts in operating system market share, according to Counterpoint.
Alphabet Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Android still led with 79% share worldwide, its lowest for a June quarter, as competition in China and rising premium demand in India drove its decline. Still, strong sales from Samsung Electronics Co (OTC:SSNGY), vivo, HONOR, and Motorola helped limit the drop.
Meanwhile, Apple iOS regained 1% share globally by performing well in key markets such as India, the Middle East and Brazil, and maintaining high upgrade rates in its largest markets — the U.S. and China.
Huawei's HarmonyOS continued to expand in China, holding its position as the country's second-largest smartphone OS for the sixth straight quarter, driven by strong Nova series demand and solid reception for the foldable Pura X.
AAPL Price Action: Apple shares were trading lower by 0.23% to $272.34 premarket at last check Friday.
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