Counterpoint’s Market Monitor Tracker attributed the decline primarily to a high base effect from last year’s government subsidy program and rising component costs. Counterpoint noted that February’s Lunar New Year promotions provided a slight boost, but said the “magnitude of these discounts was hampered by a sharp increase in memory costs.” Rising costs are already driving up retail prices on both new and used devices, and the pressure is expected to continue through the second quarter.
Apple rose to second place in the market with shipments up 20% year over year, driven by strong iPhone 17 series demand, promotional price cuts, and government subsidies. Counterpoint says Apple is best positioned among manufacturers to navigate the ongoing global memory crunch, supported by its premium product portfolio and supply chain management. The firm expects Apple to absorb rising costs internally in the near-to-medium term and expand its market share as a result. The first quarter result extends a strong run for Apple in China; the company reclaimed the top spot in the country in the fourth quarter of 2025 with shipments up 28% year over year, and recorded a 23% sales increase in the first nine weeks of 2026.
Huawei led with a 20% market share, its highest since the fourth quarter of 2020, with shipments up 2% year over year, aided by domestic supplier relationships that cushion the impact of rising memory costs. OPPO ranked third following the reintegration of realme, with OnePlus rising 53% year over year on the Ace 6 and Turbo 6 series, though OPPO’s decision to raise prices on older models in March has weighed on demand. vivo grew 2% year over year on mid-to-low-end strength, while Xiaomi was the sharpest decliner, falling 35% year over year as its core models underperformed the previous generation.
Counterpoint warned that manufacturers broadly face a “double hit” of shrinking shipments and thinning margins, and forecast that China smartphone shipments will decline 9% for the full year. Apple, by contrast, is expected to use the cost pressure to its advantage, absorbing memory price increases internally while rivals are forced to raise prices and cede ground.
This article, “Apple Leads Top Brands for China Smartphone Growth as Market Declines” first appeared on MacRumors.com
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