Apple (AAPL) Stock Bucks China Smartphone Slump With 20% iPhone Surge in Q1

TLDR

• Apple’s iPhone shipments in China rose 20% in Q1 2026, the strongest growth among all major vendors.
• Overall China smartphone market fell 4%, hurt by supply chain issues and rising memory chip costs.
• Apple climbed to second place with a 19% market share; Huawei held the top spot at 20%.
• Xiaomi shipments collapsed 35%, largely due to a high base effect from last year’s promotions.
• Counterpoint Research says Apple is best placed to absorb rising costs and grow market share.

Apple’s iPhone shipments in China jumped 20% in the first quarter of 2026, according to data from Counterpoint Research. That’s the highest growth rate among the top six vendors in the world’s largest smartphone market.

Apple Inc., AAPL

The result came despite a tough environment. Overall China smartphone shipments fell 4% in the January-to-March period, hit by supply chain disruptions and soaring memory chip prices pushing up retail costs across the board.

Apple ended the quarter in second place, capturing a 19% market share. Huawei held onto the top spot with 20% market share, posting a more modest 2% growth, supported by demand across both its high-end and budget lines including the Enjoy 90 series.

Demand for the iPhone 17 series helped drive Apple’s performance, alongside promotional price cuts and government subsidies in China. Those factors combined to set Apple apart from most of its rivals.

AAPL stock was down 1.14% on the day the data was published.

The Chip Cost Squeeze

Rising memory chip costs have been a major theme across the Chinese smartphone market this year. Vendors have been raising prices on budget handsets to protect margins, and Counterpoint expects that pressure to continue into Q2.

Counterpoint says Apple is better placed than most to handle this. The firm noted Apple is “more likely to absorb rising costs internally and expand its market share” in the near-to-medium term, citing its premium product lineup and supply chain management.

Vivo was the only other top vendor to post growth, up 2% year-on-year, driven by mid-to-low-end models including the Y50, Y500 and S50. Oppo and Honor fell 5% and 3% respectively.

Xiaomi Takes the Hardest Hit

Xiaomi had a rough quarter, dropping to sixth place after shipments fell 35%. Lam put that down largely to a high base effect. A year earlier, Xiaomi had benefited from aggressive price cuts and government subsidies that inflated its numbers.

With those tailwinds gone, the comparison was always going to be difficult.

Counterpoint’s Lam said he expects more headwinds for the broader market in Q2, as Chinese brands look to raise prices further.

Apple has now posted the top growth rate among China’s major smartphone vendors for Q1 2026, with shipments up 20% year-on-year.

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