Apple China Sales Jump

The iPhone 17 helped Apple post a 23% jump in China smartphone sales in the first nine weeks of 2026, moving against a market that slipped overall. According to Counterpoint data cited by Reuters, Apple's unit sales growth came while China's broader smartphone market fell 4% year-on-year from January to early March, a sign that demand remains soft despite new government subsidies launched at the start of 2026.

Apple's momentum was tied to two levers that mattered most in this period: online price cuts and subsidy eligibility. Counterpoint said e-commerce discounts helped lift demand, while state subsidies applied to the base iPhone 17 model added another push. That combination made Apple more competitive in a market where many buyers are still careful with discretionary spending.

Memory costs are changing pricing

A second factor is cost pressure across the supply chain, especially memory. Counterpoint pointed to higher memory chip costs as a driver behind pricing moves from Android brands. OPPO and vivo have announced price increases on some existing models taking effect this month, which the research firm described as partly a test of consumer tolerance ahead of new launches and a way to guide pricing for next-generation devices.

Apple may hold pricing steadier

Apple, by contrast, is expected to keep pricing steadier than rivals. Counterpoint's view is that Apple's supply chain control gives it more room to absorb part of the margin pressure rather than pushing costs directly to buyers. If Android competitors raise prices while Apple holds closer to its current range, Apple can keep demand stronger and potentially take share, particularly in segments where shoppers compare models based on monthly affordability rather than headline specs.

Huawei's domestic sourcing advantage

Huawei could also find an angle in this environment. Counterpoint noted that Huawei's reliance on domestic suppliers may provide a cost buffer if those suppliers price below international memory vendors. That could help Huawei compete more aggressively in the low-to-mid-end market, where price sensitivity is higher and small differences can swing volumes.

What to watch next in 2026

Looking ahead, Counterpoint expects China's market to remain under pressure from March through May, with better conditions typically arriving in early June during the "618" shopping festival, when promotions tend to pick up. The memory cost crunch is expected to last through 2026, forcing smartphone brands into tougher decisions around component choices, margins, and shipment targets.

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