Apple outperforms China market with strong early 2026 sales

According to data from research firm Counterpoint, China’s overall smartphone market declined 4% year-on-year between January and early March, News.Az reports, citing Reuters.

Government subsidies introduced earlier in the year have had limited success in boosting weak consumer demand.

Apple’s growth was supported by online discounts and its inclusion in state subsidy programs for the base iPhone 17 model.

The company’s tightly managed supply chain has also helped it better absorb rising component costs compared to competitors.

While many rivals are increasing prices to offset higher memory chip expenses, Apple is expected to maintain its pricing strategy, potentially sacrificing margins to expand market share, Counterpoint noted.

In contrast, Chinese brands such as OPPO and vivo have announced price hikes on select models, partly to test consumer response ahead of upcoming product launches. Huawei may gain an advantage through its reliance on domestic suppliers, which offer lower-cost components, allowing it to stay competitive—particularly in the low- to mid-range segment.

Counterpoint expects China’s smartphone market to remain under pressure through May, with a possible rebound in early June during the annual “618” shopping festival. Meanwhile, elevated memory chip costs are projected to persist throughout 2026, forcing manufacturers to balance pricing, margins and shipment targets.