Key Takeaways
- iPhone sales in China increased 23% during the initial nine weeks of 2026
- The overall Chinese smartphone sector declined 4% during the identical timeframe
- Apple maintains pricing stability while competitors face margin pressures
- Rising memory chip expenses are pushing Android manufacturers like OPPO and vivo toward price hikes
- Apple’s robust supply chain management provides a strategic advantage in the market
Apple’s performance in China is defying broader market trends, with iPhone sales climbing substantially while competitors face contraction. Fresh analysis from Counterpoint Research reveals that iPhone sales in China surged 23% during the opening nine weeks of 2026. This contrasts sharply with China’s overall smartphone sector, which contracted 4% year-over-year during the identical period.
Despite government subsidies introduced at the year’s beginning aimed at stimulating consumer spending, widespread demand remained weak. Apple, however, successfully navigated these challenging conditions.
The company’s growth was propelled by aggressive e-commerce promotional pricing and the base iPhone 17 model’s qualification for government subsidy programs. These combined factors attracted Chinese consumers to Apple’s product lineup during a period when rival manufacturers are experiencing difficulties.
The fundamental challenge facing the industry centers on memory chip supply. Memory demand has skyrocketed, primarily fueled by 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 serve partly as market tests before upcoming product releases.
Apple Maintains Pricing Strategy as Competitors Adjust
Apple is pursuing a contrasting strategy. The company’s carefully orchestrated supply chain operations provide greater flexibility to absorb increased 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 amid market contraction reflects strategic execution — maintaining stable pricing when competitors cannot.
Huawei is implementing its own tactical response. The company utilizes domestic chip suppliers, which typically offer lower costs than international memory providers. Counterpoint indicates this cost advantage could enable Huawei to pursue expanded market share in budget and mid-range segments.
The memory supply constraint is anticipated to continue throughout 2026. Counterpoint forecasts sustained pressure on the Chinese market from March through May, with potential temporary relief during the mid-year “618” shopping event in June.
Apple Faces Extended China Revenue Challenges
This sales uptick arrives at a critical moment for Apple. The company’s Greater China revenue has experienced a multi-year decline — dropping from $74.2 billion in fiscal 2022 to $64.4 billion in 2025.
A 2023 government prohibition on iPhone usage by Chinese government employees created headwinds. Intensified competition from Huawei and other local manufacturers further impacted performance.
While the 23% sales increase in early 2026 doesn’t single-handedly reverse the long-term trajectory, it demonstrates Apple’s continued ability to drive volume when market circumstances align favorably.
Memory cost pressures are affecting Apple’s broader product portfolio as well. Micron Technology posted second-quarter revenue growth of 196%, illustrating the magnitude of memory demand expansion.
Apple introduced the MacBook Neo earlier this month at a $599 price point, establishing an accessible entry level for a new laptop category — notably, while competitors implement price increases.
The most recent Counterpoint analysis covers the first nine weeks of 2026 and was released Thursday, March 19.
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