Stock Markets February 12, 2026

Apple Posts January Sales Gain in China as Market Slumps

iPhone 17 momentum lifts Apple to single-digit growth while overall Chinese smartphone volumes contract sharply

By Ajmal Hussain AAPL
Apple Posts January Sales Gain in China as Market Slumps
AAPL

Apple recorded an 8% year-on-year increase in smartphone sales in China for January, becoming the only major brand to post positive growth in a market that contracted 23% versus the same month last year, according to data from Counterpoint Research. The iPhone 17 lineup, government subsidy eligibility for the base model, and modest price adjustments helped drive Apple’s gains, while local rivals including Huawei and Xiaomi saw double-digit declines.

Key Points

  • Apple achieved 8% year-on-year sales growth in China for January and was the only major smartphone brand with positive growth.
  • China’s total smartphone sales fell 23% year-on-year in January, a decline Counterpoint Research attributes to a high base effect and altered Chinese New Year promotion timing.
  • Huawei’s sales dropped 27% year-on-year (with the Mate 80 as its top seller for the month) and Xiaomi’s sales fell 36%, marking deep contraction among local brands.

Apple stood apart in January amid a broad slowdown in China’s smartphone market, posting an 8% year-on-year sales increase and emerging as the only major vendor to record positive growth for the month.

Counterpoint Research data released on Thursday show overall smartphone shipments in China tumbled 23% compared with January 2025. The research firm attributed the contraction to a high base effect from the prior year and shifts in the timing of Chinese New Year promotions, which altered the typical sales cadence.

Within that weakened market, Apple retained a leading position with a 19% share. The company’s performance was propelled by sustained demand for the iPhone 17 series, which helped Apple achieve its strongest January market share in five years. The base iPhone 17 model’s qualification for government subsidies expanded its appeal and was linked to a 9% month-on-month sales increase for the model.

Counterpoint also observed that discounts on the iPhone 17 series have so far been relatively modest, a dynamic that the firm said leaves Apple scope either to lower prices further or to optimize margins before it introduces the next generation of handsets.

Local manufacturers faced markedly tougher conditions. Huawei’s sales fell 27% year-on-year. Within Huawei’s lineup, the Nova series did not perform as well as it did in the previous year, while the base Mate 80 was reported as the company’s best-selling model for January.

Xiaomi experienced the steepest decline among major Chinese brands, with sales down 36% from the same month a year earlier.


Market context and takeaways

  • Apple’s January growth contrasts with a broader 23% annual shrinkage in China’s smartphone market.
  • The iPhone 17 series is the primary driver of Apple’s improved market share and month-on-month sales momentum.
  • Chinese incumbents saw significant year-on-year declines, with Huawei down 27% and Xiaomi down 36%.

The data sketch a market where timing of promotions and the lingering effects of last year’s sales base materially influenced year-over-year comparisons. For Apple, relatively restrained discounting to date suggests strategic flexibility ahead of the next product cycle. For domestic vendors, the numbers reflect near-term pressure on volumes.

Risks

  • Timing shifts in Chinese New Year promotions and high base effects can produce volatile year-on-year comparisons - this affects smartphone vendors and retail channels.
  • If Apple chooses to pursue deeper price cuts rather than margin optimization, competitive dynamics and profitability in the smartphone sector could be affected - this impacts device makers and component suppliers.
  • Sustained volume weakness for Chinese brands like Huawei and Xiaomi introduces uncertainty for suppliers and retailers that depend on their sales performance.

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