What is driving the iPhone resurgence? Strong demand from China, the US, and Japan has propelled a 15% growth in April-May, despite rising interest in AI-driven features.
Apple recorded a 15% year-on-year (YoY) increase in iPhone sales during April and May 2025, according to Counterpoint Research, marking its highest market share for these two months combined since the pandemic began in 2020.
From a 10.9% market share in April-May 2019, the figure stands at 17.4% in 2025. The report highlighted that the growth was fuelled mainly by strong performance in Apple’s two biggest markets: the United States (US) and China. Both countries posted positive annual growth for the first time in three years during this typically quieter sales period.
In China, Apple regained the top smartphone spot in May, bouncing back from previous losses amid fierce competition from Huawei and other brands. Government subsidies and attractive deals have played a key role in reviving demand for iPhones in the region. Its sales grew 20% YoY.
The US market also rebounded with 26.8% annual sales growth, though analysts are questioning if the sales surge may be linked to consumer concerns over future tariffs. “Looking at June numbers rolling in we are asking two things: Have the last couple of months in the US been about consumer buying on tariff fears?” said Ivan Lam, Senior Analyst at Counterpoint.
Apple also experienced double-digit sales growth in Japan, India, and high-income countries in the Middle East.
Japan, in particular, saw a spike in demand, led by the launch of the compact iPhone 16e. The model’s small form factor and competitive pricing have struck a chord with Japanese consumers. Promotions also boosted sales of base models like the iPhone 14.
“Japan’s seeing a resurgence of the iPhone this year and the compact iPhone 16e is proving extremely popular amongst Japanese consumers, building on the iPhone SE and popularity of smaller iPhones in previous years,” says Counterpoint’s Tokyo-based senior analyst Yoko Miyashita.
At the same time, India continues to be a bright spot for Apple, both as a manufacturing hub and a growing consumer market. “The iPhone is the most aspirational tech product for tech-savvy consumers here,” said Neil Shah, VP of Research.
Reflecting on how Android users are now upgrading to Apple, he said, “iPhone growth continues to come from mature smartphone users entering into the iOS ecosystem as they look to upgrade to a more premium smartphone experience.”
However, despite rising interest in AI features, analysts say buyers are still prioritising brand value and device performance over Agentic AI tools. Jeff Fieldhack of Counterpoint noted, “I would say Apple’s bought some time to prepare and deliver something really special with Siri in coming iterations,” he noted.
With momentum building, Apple is poised for a strong Q2, but all eyes remain on the performance in its two biggest markets.
Read more: Apple Produced iPhones Worth ₹150B In May 2025, Slight Dip From April
