Apple significantly outperformed its competitors in China during the first quarter of 2026, recording a 20% surge in iPhone shipments despite a broader market contraction. Data from Counterpoint Research shows that overall smartphone sales in China fell by 4% between January and March, a decline largely driven by supply chain volatility and soaring memory chip costs. While most manufacturers struggled with these rising overheads, Apple and Huawei were the only major vendors to report growth, securing 19% and 20% of the market share, respectively.
The market resilience of the iPhone is attributed to its perceived longevity, with Chinese consumers viewing the devices as a high-value investment capable of lasting at least three years. In contrast, many of Apple’s rivals have been forced to hike prices on budget handsets to protect their profit margins, leading to significant sales drops for others. Xiaomi, for instance, saw shipments plummet by 35%, falling to sixth place, while Oppo and Honor also experienced declines. Vivo managed a slight 2% increase, bolstered primarily by strong sales during the Lunar New Year.
Looking ahead to the second quarter, analysts expect continued challenges as brands prepare for further price increases. However, the outlook remains relatively positive for the market leaders. Huawei is anticipated to maintain its momentum through strong demand for its entry-level devices, while Apple is expected to continue leveraging its premium brand position to navigate the ongoing economic headwinds in the world’s largest smartphone market.
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