Apple announced unprecedented iPhone sales performance in the Chinese mainland during its Q1 2026 earnings report released Thursday, marking a dramatic comeback in the world's most competitive smartphone market. The California-based company saw China revenue jump 38% year-over-year, with 16 million iPhones shipped in the fourth quarter of 2025 alone — reclaiming its position as the region's top quarterly vendor.
CEO Tim Cook attributed the success to record-breaking upgrades and double-digit growth in first-time iPhone buyers, telling analysts: "This quarter's results demonstrate Apple's enduring appeal in China through continuous innovation." The iPhone 17's unchanged pricing strategy despite hardware improvements proved particularly effective in attracting cost-conscious consumers.
While Huawei secured the 2025 annual market leadership crown, Apple's resurgence highlights shifting dynamics in China's tech sector. The five-way battle between Huawei (16.4%), Apple (16.2%), Vivo (16.2%), Xiaomi (15.4%), and OPPO (15.2%) has created the most evenly divided premium smartphone market in recent history.
Despite the sales triumph, Apple cautioned investors about upcoming margin pressures from global chip shortages and rising memory costs. The company also revealed its AI development roadmap, confirming a partnership with Google while maintaining independent research efforts. This dual approach aims to accelerate enhancements to Siri and other services following the 2024 introduction of its Apple Intelligence platform.
