(Yicai) July 4 -- Apple's iPhone sales in China grew last quarter for the first time in almost two years, thanks to timely price cuts, e‑commerce promotions, and the country's trade‑in subsidies for old consumer goods, according to Counterpoint Research.

Apple’s smartphone sales jumped 8 percent in the three months ended June 30 from a year earlier, following a strong showing by the 16 Pro and Pro Max models, Counterpoint said yesterday. 

“Apple's adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” said Ethan Qi, associate director at Counterpoint. The US tech giant claimed the top spot during the annual mid-year retail extravaganza, which ran from May 13 through June 18, with three iPhone models ranking in the top half of the bestseller list.

But Apple still trails rival Chinese handset makers Huawei Technologies and Vivo, according to Counterpoint. Sales by market leader Huawei jumped 12 percent in the quarter, while Vivo’s fell 9 percent.

Following seven straight quarters of declining sales, Apple this year ramped up its promotional efforts in the Chinese market. In May, the company issued a price‑adjustment notice to its Chinese distributors, cutting the store price of the iPhone 16 series by CNY1,400 (USD195), and offering discounts of up to CNY2,000 on some e‑commerce sites.

On June 24, Apple’s China website announced the brand’s participation in the national trade‑in subsidy program for old consumer goods, offering discounts of as much as CNY2,000, with the offer limited to Beijing and Shanghai.

It was Apple’s first direct involvement in the government subsidy scheme, whereas previously its products had only qualified via third‑party channels such as online retailers like JD.Com and Alibaba Group's Tmall.

Thanks to the subsidies, China’s smartphone sales rose 1 percent last quarter from a year ago, said Zhang Mengmeng, a senior analyst at Counterpoint. But the subsidies may taper off in this half of the year, introducing some uncertainty to market growth, Zhang pointed out.

Editor: Martin Kadiev