Key Takeaways
- iPhone demand in China increased 23% during the initial nine weeks of 2026
- The overall Chinese smartphone sector declined 4% during this timeframe
- Apple maintains pricing stability while competitors raise costs due to margin pressures
- Rising memory chip expenses are pushing Android manufacturers like OPPO and vivo to increase prices
- Apple’s robust supply chain management provides a competitive advantage in the current market
Apple’s performance in China’s smartphone market is defying broader industry trends, with iPhone demand climbing substantially while competitors face declining sales. According to fresh data from Counterpoint Research, iPhone sales in China increased 23% during the opening nine weeks of 2026. This surge stands in stark contrast to China’s overall smartphone sector, which contracted 4% year-over-year during the identical period.
Government-backed subsidy programs introduced at the beginning of the year haven’t managed to stimulate widespread consumer spending across the industry. Apple, however, has bucked this trend effectively.
The impressive growth was driven by promotional pricing on e-commerce platforms and Apple’s qualification for government subsidies on the standard iPhone 17 model. These factors combined to attract more Chinese buyers to Apple’s product lineup during a period when competitors face significant headwinds.
The primary challenge confronting the market currently centers on memory chip supply dynamics. Memory demand has skyrocketed, primarily due to AI hardware requirements. This surge has elevated costs industry-wide and compressed profit margins for smartphone manufacturers.
Chinese Android manufacturers OPPO and vivo have announced price adjustments on select existing models, taking effect this month. According to Counterpoint, these increases serve partly as market testing ahead of upcoming product releases.
Apple Maintains Pricing Strategy While Competition Adjusts
Apple is pursuing an alternative strategy. The company’s meticulously controlled supply chain provides greater flexibility to absorb elevated memory costs without transferring them to consumers.
“Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share,” Counterpoint said in its report.
This approach is clearly delivering results. A 23% sales increase during a market contraction represents strategic execution — not coincidence — stemming from price stability when competitors couldn’t maintain it.
Huawei, by contrast, is leveraging its own competitive advantage. The company relies on domestic chip suppliers, which typically offer lower costs compared to international memory providers. Counterpoint suggests this cost advantage could enable Huawei to pursue additional market share in budget and mid-range segments.
The memory supply constraint is projected to continue throughout 2026. Counterpoint forecasts ongoing pressure in the Chinese market from March through May, with potential temporary relief during June’s mid-year “618” shopping event.
Apple’s China Revenue Decline Context
This sales rebound arrives at a strategic moment for Apple. The company’s Greater China revenue has experienced a multi-year decline — dropping from $74.2 billion in fiscal 2022 to $64.4 billion in 2025.
A 2023 government prohibition on iPhone usage by Chinese government workers caused damage. Intensified competition from Huawei and other domestic manufacturers also contributed.
The 23% sales increase in early 2026 doesn’t single-handedly reverse this extended trend, but it demonstrates Apple’s ability to generate strong demand in the market when favorable conditions emerge.
The memory cost dynamics are also impacting Apple’s broader product portfolio. Micron Technology reported second-quarter revenue growth of 196%, illustrating the magnitude of surging memory demand.
Apple introduced the MacBook Neo earlier this month at $599, establishing a low entry price for a new laptop series — once again, while competitors are implementing price increases.
The most recent Counterpoint data encompasses the first nine weeks of 2026 and was released Thursday, March 19.
