(Yicai) Aug. 1 -- Apple grew its sales in China by 4 percent last quarter, marking the iPhone maker's first quarterly increase in the world's second-largest economy in two years, driven by expanded consumer subsidies.

In the three months ended June 28, Apple reported net sales of USD15.4 billion in China, up from USD14.7 billion a year earlier, the California-based tech giant announced yesterday. Total revenue rose 10 percent year-on-year to USD94 billion, with net income climbing 9 percent to USD23.4 billion.

China's broader subsidy program helped lift Apple sales, Chief Executive Tim Cook said during an earnings call with analysts. "It was the first full quarter of the subsidy playing out," he noted.

In January, China widened its trade-in subsidy program for consumer goods to cover digital products such as smartphones and tablets, boosting Apple product sales on major e-commerce platforms JD.Com and Alibaba's Tmall.

In June, Apple said it would directly join the subsidy effort via its physical stores in Beijing and Shanghai, offering discounts of up to CNY2,000 (USD277) on computers and CNY500 (USD69) on iPhones, iPads, and Apple Watches.

Apple's smartphone sales in China rose 8 percent in the second quarter from a year earlier, the first such growth in two years, according to Counterpoint Research. The company ranked third in the local smartphone market, trailing domestic brands Huawei and Vivo.

Despite the recent uptick, Apple faces intensifying competition and a shifting consumer landscape in China. On July 30, the company said it would shut one of its 50 retail outlets in the country, located in the northeastern city of Dalian, marking its first store closure in China since entering the market in 2008.

Editor: Emmi Laine