Key Moments
- Apple’s iPhone shipments in China rose 20% in the first quarter, the fastest growth among major smartphone brands.
- Overall smartphone shipments in China declined 4% in the January-to-March period amid higher memory chip costs and supply chain issues.
- Huawei, Apple, and Vivo were the only leading vendors to record growth, while Xiaomi’s shipments fell 35% and it slipped to sixth place.
Apple Outperforms a Contracting Chinese Smartphone Market
Apple’s iPhone shipments in China increased 20% in the first quarter, according to Counterpoint Research, marking the strongest expansion among major smartphone manufacturers. This performance came even as the broader Chinese smartphone market shrank due to rising memory chip costs and supply chain disruptions.
The company advanced to second place among vendors in China during the period, supported by continued demand for the iPhone 17 series, along with promotional price reductions and government subsidies. Counterpoint noted that Apple delivered the highest growth rate among the top six brands in the market.
Resilience Amid Global Memory Chip Pressures
Counterpoint Research indicated that Apple is viewed as relatively well positioned to navigate the global memory supply crunch, pointing to its premium product portfolio and supply chain capabilities. “In the near-to-medium term, it is more likely to absorb rising costs internally and expand its market share,” the firm wrote.
Across the industry, total smartphone shipments in China dropped 4% in the January-to-March period. The decline was attributed to supply chain challenges and sharply higher chip prices, which have begun to flow through to end customers.
Impact of Rising Component Costs
“Rising component costs are already driving up retail prices, affecting both legacy models and the launch prices of new devices. This trend is expected to keep the Chinese smartphone market under significant pressure through the second quarter,” said Counterpoint analyst Ivan Lam.
Lam also highlighted ongoing demand at the higher end of the market. “However, the premium smartphone segment is resilient, with OEMs bringing in features like breakthrough imaging hardware, foldables and AI agents to drive replacement demand,” he added.
Vendor Performance Breakdown
Only a few leading brands managed to expand shipments in this challenging environment. Huawei, Apple, and Vivo all posted growth, while others contracted sharply.
| Vendor | Market Share | Shipment Growth (Year-on-Year) | Key Drivers / Notes |
|---|---|---|---|
| Huawei | 20% | 2% | Strength across high-end and budget lines, including the Enjoy 90 series; retained top position |
| Apple | 19% | 20% | Robust demand for iPhone 17 series, promotional discounts, and government subsidies; moved to second place |
| Vivo | Not specified | 2% | Growth driven by mid-to-low-end models including the Y50, Y500 and S50 |
| Xiaomi | Not specified | -35% | Shipments dropped 35% and the brand slipped to sixth place, with the decline linked to a high base from prior-year promotions and subsidies |
Segment Dynamics and Competitive Landscape
Huawei held on to the leading position in the Chinese smartphone market with a 20% share and logged 2% shipment growth, helped by demand spanning both premium and budget devices, including the Enjoy 90 series. Apple followed closely with a 19% share, leveraging strong performance in the premium segment.
Vivo also achieved 2% year-on-year growth, supported particularly by its mid-to-lower tier offerings such as the Y50, Y500 and S50 models. In contrast, Xiaomi’s shipments declined 35%, pushing the brand down to sixth place. Lam attributed this sharp drop largely to a high base effect, after aggressive promotions and subsidies had significantly lifted Xiaomi’s sales in the same quarter a year earlier.
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