Apple has defied market expectations with a remarkable performance in China during early 2026, achieving a 23% boost in smartphone sales during the first nine weeks of the year while the overall market struggled.
Research firm Counterpoint released data Thursday showing China’s smartphone market declined 4% compared to the same period last year, spanning January through early March. Government subsidies introduced at the beginning of 2026 failed to stimulate weak consumer purchasing patterns.
The iPhone maker’s strong performance resulted from online retail discounts and qualification for government subsidies on the standard iPhone 17 model. Apple’s superior supply chain management positions the company to better handle rising memory chip expenses compared to competitors.
According to Counterpoint’s analysis, Apple will likely maintain current pricing while rivals increase costs. “Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share,” the research firm stated.
Rising memory chip expenses have prompted Chinese Android manufacturers OPPO and vivo to announce price hikes on select current models, effective this month. Counterpoint suggests these increases serve as market testing before launching new products and setting prices for upcoming device generations.
Huawei may gain an advantage through its partnerships with domestic suppliers, who typically offer lower prices than international memory chip companies. This cost protection against rising memory expenses could help Huawei capture additional market share in budget and mid-range segments, according to Counterpoint.
The research firm predicts continued market pressure from March through May, with potential recovery in early June during China’s annual “618” shopping event, which traditionally features widespread promotional campaigns.
Memory cost challenges are expected to continue throughout 2026, creating difficult decisions for smartphone manufacturers balancing expense management, profit protection, and sales volume goals.
