Apple recorded a 20% increase in iPhone shipments in China during the first quarter, marking the largest gain among major smartphone vendors even as overall shipments in the country fell, Counterpoint Research data showed.
The market contraction was measurable: total smartphone shipments in China slipped 4% in the January-to-March period. Counterpoint attributed the downturn in part to supply chain disruptions and sharply higher memory chip prices, which pushed up costs for many vendors.
Despite that headwind, Huawei and Apple moved against the broader trend. Huawei's shipments rose 2% in the quarter and Apple grew 20%, the research firm reported. Ivan Lam, senior analyst at Counterpoint Research, said Apple distinguished itself as competitors raised prices. "As most rivals raise prices, Apple stands out for value, with Chinese consumers knowing its products last at least three years," Lam said.
Huawei's shipment performance was supported by demand across its product range, Lam added, citing strength in both high-end models and more affordable phones such as the Enjoy 90 series. That mix helped Huawei secure a 20% market share in the quarter and maintain the top position in China's smartphone rankings. Apple followed in second place with a 19% share.
Other domestic brands showed weaker results. Xiaomi's shipments plunged 35%, a drop that Counterpoint linked to a high base effect after the company had benefited from steep price cuts and government subsidies in the same period last year. Oppo and Honor experienced declines as well, with shipments down 5% and 3% respectively. Vivo was an exception among the domestic vendors, posting a 2% increase in shipments, supported by strong sales over the Lunar New Year holiday.
Counterpoint noted a broader industry response to elevated memory chip costs: many smartphone makers raised prices on budget handsets to protect margins. Looking ahead, Lam warned of mounting pressure in the second quarter as Chinese brands contemplate further price increases. He said Apple and Huawei are expected to be relatively better positioned than rivals, and that Huawei could see additional shipment growth driven by demand for its lower-end devices.
Market context
- Overall smartphone shipments in China fell 4% in Q1 (January-March).
- Apple's iPhone shipments rose 20% in Q1, the strongest growth among major vendors.
- Huawei's shipments increased 2% and held a 20% market share; Apple held a 19% share.
Vendor performance highlights
- Xiaomi's shipments declined 35%, attributed to a high base last year that followed aggressive price cuts and subsidies.
- Oppo and Honor saw shipments fall 5% and 3% respectively.
- Vivo's shipments rose 2%, aided by Lunar New Year sales momentum.
This report is based on Counterpoint Research data and includes direct commentary from Ivan Lam, senior analyst at Counterpoint Research.