For the past two years, Apple has been having a tough time in China. Just recently, the U.S. trade war and local incentives from the Chinese government really got in the way of iPhone sales. However, Apple seems to be regaining control of the situation.
A two-year long downturn in China
As we covered recently, Apple’s extended rough patch in China may finally be easing. Since Q3 2022, the company has posted year-over-year revenue growth in just one quarter, with declines of up to 13% in the others. Not great.
Things hit a low point a couple of months ago, at the peak of U.S.–China trade tensions. To make matters worse, local government incentives for domestic brands chipped away at Apple’s market share, making it the only major smartphone maker to report a decline in shipments during Q1.
From that point on, things started to look a bit better. iPhone sales picked up (slightly) in April, Apple gave in and joined the Chinese government’s subsidy program, and it started to see early signs of a rebound last month.
Things may be looking up
Now, Counterpoint Research is out with a new report (via CNBC)that doubles down on its earlier indication of a turnaround. It claims that Apple saw an 8% rise in iPhone sales in the quarter ending June, a first in two years.
Here’s Ethan Qi, associate director at Counterpoint:
“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival.”
As CNBC explains it:
“The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.”
The report comes on the heels of Apple’s scheduling of its fiscal Q3 earnings results. It will take place on July 31st, and will cover precisely the months of April, May, and June.
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