Adam Gray/Reuters
- The iPhone 16 was the best-selling smartphone globally in Q1 2025, Counterpoint Research reported.
- Despite topping sales, Apple's iPhone revenue missed fiscal Q1 targets, an analyst said.
- Apple's iPhone 16 Pro models face challenges in China due to government subsidies.
The iPhone 16 is on top of the world.
The base model iPhone 16 was the best-selling smartphone in the world in the first quarter of 2025, according to a Wednesday research note from Counterpoint. It was the first time in two years that a base model iPhone was in the top spot.
Apple continued its streak of dominating the top five smartphones globally. The iPhone 16, followed by the Pro models and iPhone 15, are at the top of the list, with Samsung's Galaxy A16 5G in fifth place.
In China — a key region with increasing competition — iPhone 16 Pro models have a steeper challenge due to government subsidies offering discounts on devices under 6,000 yuan, about $833, making the Pro ineligible for a markdown. However, the Pros pulled through to make up nearly half of Apple's iPhone sales for the third quarter straight.
All of this is good news for Apple, according to Jacob Bourne, a tech analyst at Business Insider's sister company, EMARKETER.
"This is definitely a crucially timed win for Apple. This demonstrates strength in their flagship product lineup despite economic headwinds and ongoing uncertainties," Bourne said.
However, Morningstar analyst William Kerwin isn't sure the tech giant should count it as a win.
"The iPhone is routinely the best selling smartphone—and the base variant overtaking the Pro this year shows the narrowed gap between the two models this year due to both needing enough chip content to run Apple Intelligence," Kerwin told BI.
Apple is in competition with itself and its past iPhone sales, which Kerwin said have been "lackluster this year and over the past two years."
Topping the global charts doesn't indicate that Apple is sitting pretty again, Kerwin said. iPhone revenue missed targets during its fiscal first quarter, coming in at $69.14 billion versus the $71.04 billion estimate.
The iPhone 16e, however, was an "interesting" piece of Counterpoint's data, Kerwin said. The budget-friendly iPhone, which starts at $599, ranked sixth in the top 10 best-selling smartphones in March — its first full month on shelves. It's expected to outperform its predecessor, the iPhone SE, in its first year.
"Overall, we've seen a narrowing of the delta between budget, base, and pro models this year," Kerwin said.
Apple has had a tough 2025. CEO Tim Cook seems to remain in limbo with the Trump Administration as President Donald Trump routinely updates his stance on tariffs. On May 23, President Donald Trump said he would implement a 25% tariff on Apple over plans for US iPhone production to be moved from China to India, Trump said in a Truth Social post.
"We believe the concept of Apple producing iPhones in the US is a fairy tale that is not feasible," WedBush Securities' Dan Ives wrote in a note on May 23.
Almost one year after it was first announced, Apple Intelligence is also a growing concern for Apple and its investors. The AI tools advertised aren't driving sales the way analysts predicted in 2024.
"The AI-enabled iPhone 16 still has not revitalized this growth, much less driven a supercycle," Kerwin said.