Key Points:
- Apple’s China smartphone sales increased by 23% in early 2026.
- The overall China smartphone market dropped by 4% during the same period.
- Apple benefited from discounts and subsidies, and its strong supply chain helps it avoid price hikes.
- Other Android makers are raising prices due to rising memory chip costs.
Apple saw a significant 23% jump in China smartphone sales during the first nine weeks of 2026. This surge stands out against a general market decline, as many Android phone makers had to raise their prices due to the increasing costs of memory chips.
Overall, China’s smartphone market actually shrunk by 4% year-on-year from January to early March, according to data released Thursday by research firm Counterpoint. Even with government subsidies introduced at the start of the year, consumer demand remained low.
Apple’s success came from a few factors: attractive e-commerce discounts and the fact that its base iPhone 17 model qualified for state subsidies. These benefits made Apple’s phones more appealing to buyers.
The report highlights that Apple’s strong control over its supply chain gives it an advantage. It can better handle the impact of rising memory chip costs compared to its competitors. Counterpoint believes Apple will likely keep its prices stable, choosing to absorb some of the profit pressure to potentially gain more market share.
Meanwhile, Chinese Android phone makers like OPPO and Vivo have announced price increases for some of their current models, starting this month. Counterpoint suggests this move is partly to see how consumers react before launching new products and deciding prices for their next phones. Huawei, on the other hand, might benefit from using local suppliers, who often charge less for memory chips. This could give Huawei a cost advantage, allowing it to capture more of the low-to-mid-range market.
Counterpoint expects the Chinese market to remain challenging from March through May. However, they anticipate some relief in early June with China’s “618” shopping festival, which usually brings a wave of promotions. The problem of rising memory chip costs is expected to continue throughout 2026, forcing phone makers to make tough choices between managing expenses, protecting profits, and meeting sales goals.
