Apple iPhone Sales See Significant Rebound in Early Q2 2025

Recent preliminary data from tech research firm Counterpoint’s Market Pulse Global Monthly Smartphone Sales Report indicates a substantial resurgence in Apple's iPhone sales during the initial months of the second quarter of 2025. This performance marks a significant turnaround for the tech giant.

According to the report, "iPhone sales grew a healthy 15% YoY in April and May, first two months of Q2 2025." This growth is particularly noteworthy as it represents Apple's highest market share for these two months combined since the pre-pandemic era. This strong showing reverses a trend of sales declines Apple had experienced in this specific period over the preceding three years.

The primary drivers behind this positive shift appear to be strong demand in two key markets: the United States and China. Both regions returned to positive year-over-year growth after three years of declines during this typically less seasonal period. The report authors specifically highlighted this reversal, stating, "Both US and China returned to positive YoY growth after three years of declines in this less seasonal period."

Several factors are contributing to the increased demand in these crucial markets. In the United States, anticipation of potential price increases due to upcoming tariffs, possibly as high as 25%, is prompting consumers to purchase iPhones sooner. This forward-buying behavior is providing a near-term boost to sales figures. Simultaneously, Apple has strategically offered "attractive" pricing in China, a market where it faces intense competition from local players like Huawei, Oppo, and Vivo. These competitive pricing strategies seem to be yielding positive results.

Beyond the US and China, Counterpoint also noted rising iPhone sales in Japan. This increase is attributed, in part, to strong demand for the new iPhone 16e, a compact version of the popular device, suggesting consumer interest in varied form factors. India is another market showing significant growth. The report characterizes the Indian market as evolving, with the iPhone now considered "the most aspirational tech product for tech-savvy consumers here." This shift in consumer perception in a large and growing market like India presents a substantial opportunity for Apple.

This positive news comes at a time when Apple's primary global smartphone competitor, Samsung, has been actively promoting its new foldable phone lineup. Despite this competitive pressure and the strong presence of local brands in markets like China, Apple's recent sales performance demonstrates the enduring strength of the iPhone brand.

However, the report also touches upon a potential constraint on iPhone sales: the delayed launch of Apple's advanced artificial intelligence (AI) product. While Apple has indicated that this AI functionality will be integrated into its new iOS, it is not expected to be released until next year. This delay has reportedly disappointed some consumers and has had some impact on demand. Despite this, the report suggests that the absence of the new AI features has not undermined sales as severely as some market experts had initially predicted.

Looking ahead, the market will be closely watching how Apple navigates the competitive landscape, manages potential tariff impacts, and ultimately integrates its promised AI capabilities. The strong start to Q2 2025 provides a positive foundation, but sustained growth will depend on these factors and Apple's ability to continue innovating and meeting evolving consumer demands globally.

Market Context and Investment Insights

This report provides valuable insights for investors tracking Apple (NASDAQ: AAPL). The strong rebound in iPhone sales in key markets like the US and China signals robust underlying demand, which is a positive indicator for revenue growth in the current quarter. The strategic pricing in China and the success of new models like the iPhone 16e highlight Apple's ability to adapt its market approach and product offerings.

Investors should consider the potential impact of tariffs on future US sales – while they may be driving current demand, they could pose a headwind once implemented. The growth in emerging markets like India is a long-term positive, suggesting diversification of Apple's revenue streams. The delay in AI features is a point of caution, as future growth may increasingly depend on Apple's ability to compete in the rapidly evolving AI space. Overall, the report paints a bullish near-term picture, but long-term prospects will hinge on execution in key strategic areas.

Key Takeaways

• iPhone sales saw a 15% YoY increase in April and May 2025.
• This marks Apple's highest Q2 start market share post-pandemic.
• Growth driven primarily by rebounds in the US and China.
• US demand boosted by pre-tariff buying; China by attractive pricing.
• Strong performance also noted in Japan and India.
• Delayed AI features are a minor constraint but haven't significantly hurt sales yet.

This positive sales data suggests a strong start to Apple's fiscal Q3 (calendar Q2) and could bode well for the company's upcoming earnings report.