This article first appeared on GuruFocus.

Apple (NASDAQ:AAPL) found fresh momentum in China as iPhone demand jumped, pushing the company to about 25% of the country’s smartphone market, according to a Bloomberg report citing Counterpoint Research. Successor models, from the 5,999-yuan iPhone 17 to the 8,999-yuan 17 Pro Max, sold noticeably better than their iPhone 16 predecessors, helping Apple regain share lost earlier in 2025.

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Counterpoint analyst Ivan Lam says new-model sales now account for more than 80% of Apple’s unit shipments, and rising average selling prices should boost top-line growth. Lam warns competition remains possible, Huawei plans to launch the Mate 80 series on Nov. 25, but he sees strong momentum behind Apple’s lineup and no clear signs of a sharp slowdown.

The rebound demonstrates that Apple is not in decline of its products, and those who have more to spend continue to purchase. This is a blessing to the services and accessories provided by Apple in China. In case the prices remain high, they may increase revenue significantly even in the face of stiff competition. Investors will continue to monitor China closely, where the phone cycle continues and the local competitors introduce new models, which may influence the number of shares in the short term.

Apple shares were little changed in Tuesday morning trading.