Key Takeaways:
Apple's iPhone shipments in China surged 66.3% in June from a year earlier to 3.28 million units, according to data from the China Academy of Information and Communications Technology, extending a rebound that has pushed the company's market value past $5 trillion.
"The June data confirms that Apple's China recovery is broad-based and sustained, not a one-quarter anomaly," said Rachel Kim, an analyst at Edgen. "The iPhone 17 cycle has re-engaged Chinese consumers after several years of share losses to local rivals such as Huawei and Xiaomi."
The CAICT figures, which track all foreign-branded phones including Apple's iPhones, mark the strongest June growth in at least three years. The surge follows a 38% year-over-year increase in Apple's Greater China revenue during the fiscal first quarter ended December 2025, when iPhone revenue hit $85.3 billion. In the March quarter, Apple reported total revenue of $111.18 billion, with iPhone contributing $56.99 billion and Services reaching a record $30.98 billion. The company's 2.5 billion active-device installed base provides a recurring revenue stream through subscriptions, accessories and app store purchases.
The milestone comes as Apple prepares for its first CEO transition since 2011, with John Ternus set to replace Tim Cook on Sept. 1. The company's dominance in China faces headwinds from Huawei's resurgent smartphone business, which has reclaimed market share with its Mate and P-series devices powered by domestically produced Kirin chips. Huawei shipped 11.7 million phones in China during the first quarter of 2026, according to IDC data, maintaining its position as the country's largest handset vendor by volume.
Apple's premium pricing strategy — the iPhone 17 Pro starts at 9,999 yuan ($1,380) in China — positions it against Huawei's Mate 70 series in the ultra-premium segment, where both companies compete for high-spending consumers. The June shipment surge suggests Apple is winning that battle for now, though component cost increases and potential tariff changes could pressure margins in the second half of the year.
Apple reports fiscal third-quarter earnings on July 30, with analysts expecting revenue of about $112 billion, according to consensus estimates compiled by Bloomberg. Goldman Sachs raised its price target on Apple to $370 on July 28, citing strong iPhone demand and Services growth. Apple shares closed at $340.08 on Tuesday, up 0.9%, giving the company a market capitalization of roughly $5.1 trillion.
This article is for informational purposes only and does not constitute investment advice.
