Apple is taking steps to revitalize its flagging sales in China, a crucial market for the tech giant. The company recently announced increased trade-in values for older iPhones, offering customers more credit towards the purchase of newer models. This move comes as Apple faces intensifying competition from domestic rivals like Xiaomi and Huawei, who are aggressively expanding their market share.
The trade-in value increases are significant, particularly for the high-end iPhone 15 Pro Max, which now boasts a trade-in value of up to 5,700 Chinese yuan ($791). This represents a noticeable bump from the previous value and aims to make upgrading more attractive to Chinese consumers. Similar increases apply to other iPhone models, suggesting a broad strategy to stimulate demand.
This isn’t Apple’s first attempt to boost sales in China. Throughout the past year, the company has implemented various discounts, especially during peak shopping seasons. While the latest trade-in adjustments aren’t dramatic, they highlight Apple’s ongoing efforts to remain competitive in the world’s second-largest economy. Recent data from Canalys reveals a concerning trend: Apple’s China shipments fell 8% year-over-year in the first quarter of 2025, and its market share dropped from 15% to 13%. These figures underscore the challenges Apple faces in maintaining its position.
However, Apple’s struggles in China extend beyond simple sales figures. The company’s supply chain and the future of its manufacturing operations in the country remain subject to ongoing political discussions, particularly concerning potential tariffs on chips and other electronics. While President Trump has temporarily suspended most tariffs, the uncertainty continues to cast a shadow over Apple’s operations. Adding to the complexity, Apple’s efforts to diversify its manufacturing base by moving production to India have also encountered political headwinds.
The competitive landscape in China is fiercely contested. Xiaomi, currently the leading smartphone brand in China, has been aggressively pushing into the high-end market, directly challenging Apple’s premium positioning. Huawei, after overcoming significant challenges, is experiencing a remarkable resurgence thanks to chip breakthroughs and the introduction of new devices. Xiaomi’s recent launch of the Xiaomi 15S Pro, featuring a self-developed chip, further exemplifies the technological advancements and ambitious strategies of its competitors.
With Xiaomi committing nearly $7 billion to chip development over the next decade, the competition is clearly intensifying. Apple’s trade-in initiative is a tactical response to this pressure, aiming to attract customers and maintain its foothold in a rapidly evolving and increasingly competitive Chinese market. Only time will tell if this strategy will be enough to reverse the current trend.
