TechCheck Apple’s China turnaround, and Tesla’s new chips deal 7/28/25
Jul 28, 2025
iPhone sales in China are rebounding, thanks to strategic government subsidies and discounts as Apple faces tough competition from Huawei. The potential effects of U.S.-China trade tensions on consumer behavior are also explored. Meanwhile, Tesla's game-changing $16.5 billion chip deal with Samsung promises to enhance AI capabilities for self-driving cars while marking Samsung's comeback in the semiconductor space. The implications for both companies and the tech industry are significant.
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Apple's China iPhone Sales Growth
- iPhone sales in China are increasing due to government subsidies and retailer discounts.
- Despite growth, Apple still lags behind Huawei and faces challenges like delayed AI features in China.
Subsidies Exclude Apple's Profitable Phones
- Apple's government subsidies in China exclude their most expensive 'pro' iPhones.
- Lower-tier models benefit most, meaning Apple's highest profit segments aren't seeing subsidy boosts.
Tesla's Massive AI Chip Deal with Samsung
- Tesla signed a $16.5 billion deal with Samsung to produce AI chips for self-driving cars and possibly robots.
- This deal may mark a comeback for Samsung's chip business, challenging rivals like TSMC and Intel.