In early 2026, Apple recorded a strong start in China’s smartphone market. This growth happened despite the overall weakening of demand. Data from Counterpoint Research showed Apple’s smartphone sales in China rose 23% year on year during the first nine weeks of 2026. However, the broader market fell 4% during the same period. The figures reflect that Apple is establishing its presence in the world’s largest smartphone market.
The rise can be attributed to e-commerce discounts on Apple phones and state subsidies to the base model of iPhone 17. While its competitors struggled with higher cost of components and weaker demand, Apple continued to attract buyers. Apple’s performance also highlights how pricing strategy and control on the supply chain can affect market share during a difficult sales cycle.
The Chinese smartphone market remained under pressure from January to early March, 2026. Counterpoint Research said government subsidies introduced at the start of the year did not bring about any significant rise in demand. Thus, the market posted a 4% year-on-year decline during the first nine weeks of 2026.
Apple moved against that trend. Its smartphone sales in China increased 23% over the same period, driven by discounting activity on e-commerce platforms and subsidy eligibility for the base iPhone 17 model. That combination helped Apple reach buyers who remained cautious about spending.
The growth mattered because China remains one of Apple’s key markets. Even modest gains in market share can support both device revenue and related services. The strong start also suggested that the iPhone 17 lineup maintained consumer appeal despite weaker conditions across the wider market.
Apple’s result stood out because the market backdrop remained difficult. Consumer demand stayed sluggish, and several brands faced rising cost pressure. Yet Apple managed to expand sales without relying on broad price increases, which gave it a clear advantage in the early part of the year.
Higher memory chip costs have started to affect pricing across the smartphone sector. Counterpoint Research said some Android phone makers responded by raising prices on selected models. OPPO and vivo both announced increases on some existing devices this month.
Those pricing moves reflect a broader effort to protect margins. Brands also appear to be testing consumer response before they launch next-generation models. In a weak demand environment, even small price increases can influence buying decisions and shipment targets.
Apple appears better placed than many rivals to manage that pressure. Counterpoint Research said Apple’s tight supply chain control gives it more room to absorb part of the margin squeeze instead of passing all higher costs to buyers. That approach can help Apple hold prices steady while competitors adjust theirs upward.
If the pattern continues, Apple could strengthen its position further in China’s smartphone market. Stable pricing often becomes more important when consumer demand weakens. Buyers tend to compare value more closely, especially in the premium segment.
Huawei could also benefit from the current cost environment. Counterpoint Research said Huawei’s reliance on domestic suppliers may reduce its exposure to global memory price increases. Local sourcing can give the company a cost buffer and help it compete more aggressively in the low-to-mid-end market.
That means Apple’s strong start does not remove competitive pressure. Chinese smartphone brands still hold major positions across several price bands. Pricing, promotions, and cost control will continue to shape market performance through the rest of 2026.
Counterpoint Research expects China’s smartphone market to remain under pressure from March through May, 2026. Some relief may arrive in early June, 2026, during the 618 shopping festival, which usually drives stronger promotional activity. However, the broader memory chip cost crunch may continue throughout 2026.