Apple's iPhone shipments in China surge 40% in May amid aggressive discounting

Apple's iPhone shipments: Apple's iPhone shipments in China surged nearly 40 per cent in May compared to the same month last year, continuing the rebound seen in April, according to data from the China Academy of Information and Communications Technology (CAICT), a research firm affiliated with the Chinese government.

Foreign-branded phone shipments in China rose by 1.425 million units in May, reaching a total of 5.028 million units from 3.603 million a year earlier. While the data did not specifically mention Apple, the company remains the dominant foreign phone maker in China's smartphone market, indicating that this increase can largely be attributed to Apple's performance.

The surge in sales comes after a challenging period for Apple in China, where it faced intense competition in the high-end smartphone market from local rivals like Huawei. Apple's recent success follows an aggressive discounting campaign launched on its official Tmall site in May, with price cuts of up to 2,300 yuan ($316.71) on select iPhone models.

Apple's sales growth in May extends its positive trend from the previous month, which saw a 52 per cent increase in shipments. This marks a significant turnaround from the first two months of 2023, during which Apple experienced a 37 per cent slump in sales.

Last month, Apple CEO Tim Cook projected iPhone sales growth in certain markets, including China, after the company reported an 8.1 per cent decline in second-quarter revenue from the Greater China region. The substantial price reduction in May, twice the discount offered in February, follows Huawei's introduction of its new high-end Pura 70 series in April and the Mate 60 series last August.

Huawei overtook Apple as the second-largest smartphone vendor in China in the first quarter and is enhancing its retail strategy by opening more flagship stores and expanding its network of retail distributors. Huawei spinoff Honor currently holds the top spot.

Overall, phone sales in China increased by 16.5 per cent in May, totaling 30.33 million units, according to CAICT data.

(With Reuters inputs)