Apple is back on top in China

Apple is back on top in China. The iPhone maker reclaimed the number one position in the Chinese smartphone market in May, which is considered a major rebound in one of its most critical markets. 

According to new data from Counterpoint Research, global iPhone shipments surged by 15% year-over-year during April and May, marking the strongest two-month performance for Apple since the height of the COVID-19 pandemic.

Price slashes may be part of the reasons for the rise

The growth comes largely on the back of renewed momentum in the U.S. and China, Apple’s two biggest markets. In China, where the company has faced fierce competition from domestic giants like Huawei and Xiaomi, Apple’s strategy of aggressive discounting appears to have paid off.

To remain competitive, Apple has slashed prices on its flagship iPhone 16 series. Chinese e-commerce platforms were offering discounts of up to 2,530 yuan (approximately $351) during May.

According to the China Academy of Information and Communications Technology (CAICT), shipments of foreign-branded phones in the country in April reached 3.52 million units, up slightly from 3.50 million during the same period last year.

Apple’s footprint in India is growing

Apple’s production ecosystem has been slowly shifting. Once almost entirely reliant on China’s supply chains, the company has been nudging more of its manufacturing into India.

Between March and May, Apple’s manufacturing partner, Foxconn, exported $3.2 billion worth of iPhones made in India. Almost all, 97%, were headed for the U.S., a sharp jump from just 50% last year. May alone accounted for nearly $1 billion in shipments, the second-highest monthly total on record.

Total exports from India this year have already surpassed 2024’s full-year figure, crossing $4.4 billion. By the end of 2025, India-made iPhones could represent as much as 30% of global iPhone shipments, up from 18% last year.

Cook is navigating a maze of tariffs, politics, and bottom-line pressure

Trade tensions between Washington and Beijing remain unresolved. President Donald Trump has floated the idea of levying tariffs of up to 55% on Chinese imports, a figure that could have sweeping consequences for Apple’s cost structure if reinstated.

However, Apple, with its play in India, is showing that it is not waiting around. The company has deployed tariff-avoidance measures, including chartered flights, to accelerate deliveries and avoid bottlenecks by lobbying Indian authorities to speed up customs clearance at Chennai’s international airport, aiming to slash processing times from 30 hours to just six.

Analysts warn that the iPhone maker’s fate remains closely tied to how well it performs in the U.S. and China.

In the United States, the Tim Cook-led tech giant faces intensifying scrutiny. President Trump has taken public swipes at the company for its deepening ties to India’s manufacturing sector, and lawmakers are keeping a close eye on Apple’s partnership with Alibaba for AI integration in China, a move some say may pose privacy and security risks.

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