Apple Inc. (AAPL) is having a moment in China. The company sold one out of every four smartphones in the country during October, matching its previous peak from 2022 and demonstrating that premium demand remains surprisingly robust even as the broader market shows signs of fatigue.

The secret sauce? The iPhone 17 series is absolutely crushing it. iPhone shipments jumped 37% year-over-year in October, with all three iPhone 17 models posting mid-to-high double-digit growth. The base model led the charge, and here's the kicker: new iPhones accounted for over 80% of Apple's total unit sales, according to Counterpoint analyst Ivan Lam.

China's overall smartphone market grew 8% year-over-year in October, so Apple's 37% growth is significantly outpacing the field. Rising average selling prices should amplify revenue even further, setting Apple up for what analysts expect to be a record December quarter.

But Apple isn't operating in a vacuum. Domestic manufacturers are making moves too. Xiaomi (XIACY) hit the No. 2 spot for the first time in over a decade, powered by an early launch of its Xiaomi 17 series and a compelling product lineup. Meanwhile, OPPO drove growth with its Find X9 and Reno 14 series.

The competitive landscape remains intense. Huawei launched its Mate 80 on November 25, but Apple appears to be maintaining strong momentum despite the new rival offering, Lam noted.

What's striking is that Apple has reclaimed its quarter-of-the-market milestone while domestic brands simultaneously expand their presence. It's not necessarily a zero-sum game—premium buyers are gravitating toward Apple while the broader market supports multiple winners.

Apple stock has gained close to 7% year-to-date. Shares traded up 0.36% at $268.41 in premarket action on Tuesday.