^{Photo: South China Morning Post}

Apple Inc. has ramped up its trade-in incentives in China in a strategic bid to reclaim lost ground in one of its most vital markets. On Friday, the tech giant quietly increased the trade-in value for various iPhone models, hoping to entice more consumers to upgrade to the latest devices amid growing pressure from Chinese rivals and a broader sales slowdown.

iPhone Trade-In Boost: What’s New?

The headline change is for the iPhone 15 Pro Max, which now offers a maximum trade-in value of 5,700 yuan ($791)—a modest bump from 5,625 yuan. Given that a brand-new iPhone 15 Pro Max starts at 7,999 yuan in China, the updated trade-in can cover over 71% of the device’s retail price, depending on the model’s condition and configuration.

Other devices also saw increases in trade-in value. For instance, the iPhone 15 Pro can now fetch up to 4,750 yuan, slightly up from 4,725 yuan. Apple did not specify increases for every device, but the pattern shows a broader effort to make upgrades more appealing for Chinese consumers.

This move builds on a year of targeted discounting by Apple, particularly during peak shopping seasons such as Singles’ Day, Lunar New Year, and national holidays.

A Critical Market Under Strain

China accounts for nearly 20% of Apple’s global revenue, making it a linchpin in the company’s international strategy. However, recent figures reflect growing headwinds. According to Canalys, Apple’s smartphone shipments in China dropped by 8% year-over-year in Q1 2025, and its market share shrank from 15% to 13%.

Apple’s revenue from the Greater China region, which includes mainland China, Hong Kong, and Taiwan, also slipped slightly year-over-year, signaling that the company’s challenges go beyond just mainland consumer sentiment.

The Growing Threat of Xiaomi and Huawei

The trade-in initiative also comes amid intensifying competition from Chinese tech powerhouses Huawei and Xiaomi.

• Huawei has staged a dramatic comeback in its domestic market, particularly after launching its Mate 60 Pro line powered by an advanced in-house chip, signaling a partial recovery from U.S. sanctions.
• Xiaomi, meanwhile, was the market leader in Q1 2025 and is increasingly targeting the premium segment where Apple traditionally dominates. On Thursday, it launched the Xiaomi 15S Pro, powered by an in-house developed chipset, positioning it as a direct competitor to the iPhone 15.

To back its ambition, Xiaomi has pledged nearly $7 billion over the next decade to strengthen its semiconductor development and manufacturing, aiming to control both software and hardware in its ecosystem—similar to Apple’s vertically integrated model.

Beyond Sales: Supply Chain and Geopolitical Risks

Apple’s concerns in China are not limited to competition or sales. The company still manufactures over 90% of its iPhones in China through its key supplier Foxconn, making it vulnerable to geopolitical shifts, trade tensions, and regulatory pressures.

While former U.S. President Donald Trump previously halted additional tariffs on China, discussions continue around potential duties on chips and electronics. Apple has begun shifting parts of its production to India as a hedge, but even that move has raised concerns in Washington.

Earlier this month, Trump revealed that he had spoken to Apple CEO Tim Cook, expressing dissatisfaction about the company expanding production in India, and urging Apple to “build in the U.S.” instead.

A High-Stakes Game in a Strategic Market

Apple’s decision to increase trade-in values in China is more than a marketing gimmick—it’s a response to real challenges in a fiercely competitive market. With domestic giants like Xiaomi and Huawei advancing quickly in both hardware and software, Apple must do more than simply rely on brand loyalty.

Whether these incremental incentives will meaningfully boost sales remains to be seen. However, what’s clear is that Apple is shifting gears, exploring both pricing flexibility and supply chain diversification to maintain relevance in the world’s second-largest smartphone market.