Apple registered a 23% increase in smartphone sales in China over the first nine weeks of 2026, significantly outperforming the broader domestic market, which contracted 4% year-on-year in the January-to-early-March period, according to data published by research firm Counterpoint.
The report attributed Apple's growth to a combination of targeted e-commerce discounts and the fact that the base iPhone 17 model qualifies for state subsidies, a factor that has likely supported demand amid otherwise weak consumer spending. Counterpoint noted that Apple's tight control of its supply chain gives the company greater ability to absorb the recent surge in memory chip costs compared with many Android rivals.
Counterpoint said that Apple is unlikely to raise retail prices in response to rising component costs. "Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share," the firm stated.
By contrast, several Chinese Android manufacturers have begun adjusting pricing to reflect higher memory costs. OPPO and vivo have announced price hikes on some existing models that are set to take effect this month. Counterpoint described these increases as partly designed to test consumer responses ahead of new product launches and to inform pricing strategies for next-generation devices.
Huawei's position differs in that the company sources more components from domestic suppliers. Counterpoint said those suppliers typically charge less than international memory chipmakers, giving Huawei a relative cost buffer as memory prices rise. The research firm expects Huawei to leverage that advantage to capture additional share in the low-to-mid-end segment.
Looking ahead, Counterpoint expects the Chinese smartphone market to face ongoing pressure from March through May. The firm anticipates some alleviation beginning in early June, when the mid-year "618" shopping festival historically triggers elevated promotional activity across retailers and platforms.
Counterpoint's outlook also flagged a broader and sustained memory cost crunch that is forecast to persist throughout 2026. That environment, the firm said, will force handset makers into difficult trade-offs between managing component costs, protecting profit margins, and meeting shipment targets.
Note: The analysis and projections in this report are derived from Counterpoint's published data and commentary. Where the report described company strategies or likely actions, those characterizations reflect Counterpoint's assessment as reported.