Core Insights - Apple achieved a 25.9% market share in China's smartphone market during the 21st week of 2025, marking a significant increase from 21.5% in the previous week, and setting a new three-year high for weekly market share [1] - The iPhone 16 Pro series saw activation numbers exceed 800,000 units, a 150% increase compared to pre-price reduction levels, with the 128GB version priced at 5,499 yuan after subsidies, making it the cheapest Pro model in Apple's history [1][2] - Apple's strategy of participating in the government-led "smart terminal subsidy plan" has been a key driver behind this sales surge [1] Market Competition - OPPO ranked second with a 14.9% market share, followed closely by Huawei at 14.8%, while Xiaomi and vivo held 14.6% and 14% respectively [1] - The price reduction strategy for the iPhone 16 Pro series has altered the competitive landscape, allowing Apple to match or undercut the prices of domestic flagship models [3] - Sales of the iPhone 16 Pro series surged by 150% in the two weeks following the subsidy announcement, with some colors experiencing stock shortages [3] Strategic Adjustments - Apple's approach signifies a new phase of "high-end price wars" in the Chinese smartphone market, combining inventory clearance and market share preservation strategies [4] - The anticipated early release of the iPhone 17 series in August aims to maintain market momentum [4] - Domestic brands must balance technological innovation and price competition to remain competitive, with Huawei, Xiaomi, vivo, and Honor all needing to demonstrate significant breakthroughs in the next 6-12 months [4][9] Supply Chain Dynamics - Apple announced a shift of iPhone production capacity to India, with plans to produce 30 million units annually by 2025, although China will still handle the initial launch production [5][6] - The long-term implications of this shift may alter the global supply chain landscape [6] Policy Considerations - The sustainability of the government subsidy policy remains a variable, with the "smart terminal subsidy plan" set to expire at the end of 2025 [7][8] - If the subsidy policy weakens, Apple will need to seek new growth points through product strength [8] - The push for "domestic substitution" by the Chinese government may pose challenges for Apple, particularly regarding its reliance on imported chips [8]