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Apple recorded a 23% year-on-year increase in smartphone sales in China خلال the first nine weeks of 2026, defying a broader market slowdown driven by rising component costs.
According to data from Counterpoint Research, China’s overall smartphone market declined 4% during the January to early March period, as weak consumer demand persisted despite government subsidy programs.
Apple’s growth was supported by e-commerce discounts and eligibility for state subsidies on its base iPhone 17 model, helping the company attract buyers even as the market softened.
The report said Apple’s tightly controlled supply chain has allowed it to better absorb rising costs for memory chips, a key pressure point for the industry, enabling it to maintain pricing while competitors adjust.
By contrast, Chinese smartphone makers such as OPPO and vivo have begun raising prices on some devices to offset higher component costs.
Analysts said these price increases may also serve as a test of consumer response ahead of upcoming product launches.
Huawei could gain an advantage from its reliance on domestic suppliers, which are generally less exposed to global memory price increases, potentially allowing it to compete more aggressively in the mid- and lower-end segments.
Counterpoint expects the Chinese smartphone market to remain under pressure through the coming months, with potential improvement around mid-year during the country’s “618” shopping festival, a key retail event that typically drives promotional activity.
The broader rise in memory costs is expected to continue throughout 2026, forcing smartphone manufacturers to balance pricing, margins and shipment volumes in an increasingly competitive market.
According to data from Counterpoint Research, China’s overall smartphone market declined 4% during the January to early March period, as weak consumer demand persisted despite government subsidy programs.
Apple’s growth was supported by e-commerce discounts and eligibility for state subsidies on its base iPhone 17 model, helping the company attract buyers even as the market softened.
The report said Apple’s tightly controlled supply chain has allowed it to better absorb rising costs for memory chips, a key pressure point for the industry, enabling it to maintain pricing while competitors adjust.
By contrast, Chinese smartphone makers such as OPPO and vivo have begun raising prices on some devices to offset higher component costs.
Analysts said these price increases may also serve as a test of consumer response ahead of upcoming product launches.
Huawei could gain an advantage from its reliance on domestic suppliers, which are generally less exposed to global memory price increases, potentially allowing it to compete more aggressively in the mid- and lower-end segments.
Counterpoint expects the Chinese smartphone market to remain under pressure through the coming months, with potential improvement around mid-year during the country’s “618” shopping festival, a key retail event that typically drives promotional activity.
The broader rise in memory costs is expected to continue throughout 2026, forcing smartphone manufacturers to balance pricing, margins and shipment volumes in an increasingly competitive market.
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