Key Highlights
- iPhone shipments in China climbed 23% during the initial nine weeks of 2026
- The broader Chinese smartphone sector declined 4% during this same timeframe
- Apple maintains stable pricing, choosing to accept reduced margins rather than increase costs
- Rising memory chip expenses are pushing Android manufacturers such as OPPO and vivo toward price hikes
- Apple’s efficient supply chain management provides a significant advantage against competitors
Apple’s iPhone performance in China is creating difficulties for competitors as sales climb substantially while the overall market experiences contraction. Fresh data released by Counterpoint Research reveals iPhone shipments in China increased 23% throughout the opening nine weeks of 2026. This growth stands in stark contrast to China’s total smartphone sector, which contracted 4% year-over-year during the identical period.
Government incentive programs introduced at the beginning of the year haven’t successfully stimulated weak consumer spending industry-wide. Apple, nevertheless, found ways to overcome these headwinds.
The impressive performance was driven by promotional pricing through e-commerce platforms and Apple’s qualification for government rebates on the standard iPhone 17 version. These combined factors attracted more Chinese buyers to Apple’s product family during a period when rival manufacturers are facing challenges.
The primary source of market turbulence currently centers on memory component pricing. Memory demand has surged dramatically, primarily fueled by AI hardware requirements. This has elevated costs throughout the sector and compressed profit margins for smartphone manufacturers.
Chinese Android manufacturers OPPO and vivo have declared price adjustments on certain current models, taking effect this month. Counterpoint indicates these increases partially serve as market tests ahead of upcoming product releases.
Apple Maintains Pricing Strategy as Competitors Adjust
Apple is pursuing an alternative strategy. The company’s carefully controlled supply network provides 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 surge amid market contraction represents more than fortune — it’s the outcome of maintaining stable pricing when competitors couldn’t.
Huawei, in contrast, is executing its own strategy. The company utilizes domestic chip providers, which typically cost less than international memory suppliers. Counterpoint notes this cost advantage could enable Huawei to capture additional market share in budget-to-midrange segments.
The memory supply constraint is anticipated to continue throughout 2026. Counterpoint forecasts the Chinese market will remain under strain from March into May, with brief relief expected during the mid-year “618” shopping event in June.
Apple’s Chinese Revenue Has Experienced Decline
This sales uptick arrives at an opportune moment for Apple. Its Greater China revenue has followed a declining trajectory over recent years — dropping from $74.2 billion in fiscal 2022 to $64.4 billion in 2025.
A 2023 government prohibition on iPhone usage by Chinese government workers created challenges. Intensified competition from Huawei and additional domestic manufacturers also contributed.
The 23% sales increase in early 2026 doesn’t single-handedly reverse this decline, but it demonstrates Apple’s capacity to generate sales volume in the market when favorable conditions emerge.
The memory cost pressures are also affecting Apple’s additional product categories. Micron Technology announced second-quarter revenue growth of 196%, indicating the magnitude of memory demand expansion.
Apple introduced the MacBook Neo earlier this month at $599, establishing an accessible price point for a new laptop series — once again, 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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