iPhone Shipments Surge 20% in China

New data from Counterpoint Research shows that despite overall shipments in China dropped by 4% during Q1 of 2026, Huawei and Apple managed to defy the downward trend by capturing the majority of consumer interest.

Huawei secured the top spot in the market, reaching its highest quarterly share since late 2020. Holding 20% of the market, the company grew its shipments by 2% compared to the previous year. Analysts suggest that Huawei’s deep ties with domestic suppliers have given it a unique advantage, allowing the brand to better manage the rising costs of parts that are currently hurting its rivals.

Apple followed closely in second place with a 19% market share. The Cupertino tech giant saw a 20% surge in shipments, making it the fastest-growing major brand in the country for the quarter. This growth was largely fuelled by the iPhone 17 series and a strategy of absorbing cost increases rather than passing them on to buyers.

The primary reason for the market’s overall decline is a global shortage of memory chips. Prices for DRAM and NAND components have climbed sharply, putting immense pressure on manufacturers. For many brands, this has been a “double hit” of falling sales and shrinking profit margins.

To cope, several major players like Xiaomi, OPPO, and vivo raised retail prices by as much as 10% to 30% on certain models. These price hikes appear to have cooled consumer interest, particularly in the budget and mid-range segments. Xiaomi, for instance, saw a significant 35% drop in sales as it struggled to balance its margins against the rising costs of production.

Looking ahead, the road remains rocky. Memory costs are expected to stay high throughout 2026, and early forecasts suggest the Chinese market could shrink by nearly 9% by the end of the year.