Apple recorded a 20% year-on-year increase in iPhone shipments across China during the first quarter, marking the fastest growth rate among the market's leading brands, Counterpoint Research reported. That performance helped the U.S. tech firm advance to second place in the market for the quarter, with sustained demand for the iPhone 17 series, retailer promotions and government subsidy support cited as key drivers.
Counterpoint's analysis highlights Apple as the best positioned among major vendors to manage the current global memory shortage. The research firm pointed to Apple's premium product mix and its supply chain capabilities, arguing that the company is "more likely to absorb rising costs internally and expand its market share" in the near-to-medium term.
At the aggregate level, China’s smartphone shipments contracted by 4% in the January-to-March period. Counterpoint attributed the decline to supply chain disruptions and escalating memory chip prices, which have begun to push up retail prices and weigh on both legacy models and the launch prices of new devices.
"Rising component costs are already driving up retail prices, affecting both legacy models and the launch prices of new devices. This trend is expected to keep the Chinese smartphone market under significant pressure through the second quarter," said Counterpoint analyst Ivan Lam.
Lam added that the premium smartphone segment remains relatively resilient, with manufacturers introducing advanced imaging hardware, foldable designs and AI agents to stimulate replacement demand.
Within the vendor rankings, Huawei retained the top position with a 20% market share and posted 2% growth year-on-year, buoyed by demand across both its high-end portfolio and budget offerings such as the Enjoy 90 series. Apple followed with a 19% share. Vivo also reported 2% growth, driven by mid-to-low-end models including the Y50, Y500 and S50.
Xiaomi experienced a steep contraction, with shipments down 35%, a decline that Counterpoint attributed largely to a high base effect after aggressive promotions and subsidies boosted the company's volumes in the same quarter a year earlier.
The data set underscores a bifurcated market: premium devices and brands with strong supply-chain positioning are gaining share, while rising component costs and supply disruptions are suppressing total shipment volumes. How these dynamics evolve through the next quarter will depend on the persistence of memory price inflation and the ability of vendors to either absorb costs or continue to stimulate demand through subsidy and promotion programs.