Key Highlights
- iPhone shipments in China increased 23% during the initial nine weeks of 2026
- The overall smartphone market in China declined 4% during the identical timeframe
- Apple maintains stable pricing while competitors increase prices due to component costs
- Rising memory chip expenses are pushing Android manufacturers like OPPO and vivo toward price hikes
- Apple’s supply chain management provides a competitive advantage in the current market environment
Apple is experiencing a significant upswing in China’s smartphone market while competitors face headwinds. According to fresh data from Counterpoint Research, iPhone shipments in China climbed 23% during the opening nine weeks of 2026. This performance stands in stark contrast to China’s overall smartphone sector, which contracted 4% year-over-year during the identical period.
Despite government incentive programs launched at year-start aimed at stimulating consumer spending, overall demand remained weak. Apple, however, bucked this trend convincingly.
The company’s growth was powered by aggressive e-commerce promotions and the base iPhone 17 model’s qualification for government rebate programs. These elements combined to attract more Chinese buyers to Apple’s product lineup while competitors faced mounting challenges.
The primary pressure point affecting the industry currently stems from memory component costs. Memory demand has skyrocketed, primarily due to AI hardware requirements. This surge has elevated costs industry-wide and compressed profit margins for smartphone manufacturers.
Chinese Android manufacturers OPPO and vivo have implemented price increases on select current models, taking effect this month. According to Counterpoint, these adjustments partially serve as market tests ahead of upcoming product releases.
Apple Maintains Pricing Stability Amid Industry Pressure
Apple is pursuing an alternative strategy. The company’s sophisticated supply chain operations provide greater flexibility to absorb elevated memory costs without transferring them to consumers.
“Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share,” Counterpoint said in its report.
This approach is delivering results. A 23% sales increase during a contracting market represents strategic execution — maintaining price stability when competitors cannot.
Huawei is implementing its own tactical approach. The company relies on domestic chip manufacturers, which typically offer lower costs than international memory suppliers. Counterpoint indicates this cost advantage could enable Huawei to pursue increased market share in budget and mid-range segments.
The memory supply constraint is projected to continue throughout 2026. Counterpoint anticipates sustained pressure on the Chinese market from March through May, with potential temporary relief during June’s “618” shopping event.
Apple’s Greater China Revenue Decline Context
This shipment surge arrives at a strategic moment for Apple. The company’s Greater China revenue has trended downward in recent years — declining from $74.2 billion in fiscal 2022 to $64.4 billion in 2025.
A 2023 government directive restricting iPhone usage among Chinese government workers created challenges. Intensified competition from Huawei and other domestic manufacturers added further pressure.
While the 23% early-2026 sales increase doesn’t single-handedly reverse the multi-year decline, it demonstrates Apple’s ability to capture demand when market conditions align favorably.
Memory cost pressures are affecting Apple’s broader product portfolio as well. Micron Technology reported second-quarter revenue growth of 196%, illustrating the magnitude of memory demand expansion.
Apple introduced the MacBook Neo earlier this month at $599, establishing an accessible entry price for a new laptop category — notably, while competitors implement price increases.
The most recent Counterpoint data encompasses the first nine weeks of 2026 and was released Thursday, March 19.
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