China’s smartphone shipments declined 4 percent year-on-year in Q1 2026, according to Counterpoint Research’s Market Monitor Tracker, as the market faced a high base effect from last year’s government subsidy program and rising component costs.
Rising Costs and Weak Demand Pressure Market
Huawei led the China smartphone market with a 20 percent share, its highest since Q4 2020, supported by improved supply of the Mate 80 series, government subsidies, and strong shipments of the Enjoy 90 series. Huawei’s shipments grew 2 percent, aided by its reliance on domestic suppliers, which helped offset global memory price increases.
Apple ranked second and recorded the fastest growth in the China smartphone market among the top six brands, with shipments rising 20 percent. Strong demand for the iPhone 17 series, combined with promotional price cuts and subsidies, supported its performance. Apple remains well positioned to manage memory cost pressures due to its premium portfolio and supply chain strength.
OPPO secured third place in the China smartphone market following realme’s reintegration, though internal product adjustments and a profit-first strategy led to price hikes on older models, impacting demand.
OnePlus delivered strong growth of 53 percent in the China smartphone market, driven by the Ace 6 and Turbo 6 series.
vivo posted 2 percent shipment growth in the China smartphone market, supported by strong sales of low-to-mid-end models such as the Y50, Y500, and S50.
HONOR maintained momentum in the China smartphone market with models like the X70 and HONOR 500, while the Magic V6 foldable gained traction due to its battery and durability features.
Xiaomi experienced a sharp 35 percent decline in the China smartphone market, reflecting weaker performance of core models and a cautious pricing strategy amid rising costs.
Pricing Pressure and Market Outlook
Smartphone OEMs in China are facing a dual challenge of declining shipments and shrinking profit margins, as elevated memory costs continue to impact pricing strategies. Price increases across both new and existing models are expected to further dampen demand in the near term.
A modest recovery in the China smartphone market is anticipated around June, supported by 618 shopping festival promotions. However, China’s smartphone shipments are projected to decline 9 percent in 2026, even as the market is expected to outperform the global average. Premium segments, driven by innovations such as advanced imaging, foldables, and AI features, are likely to remain relatively resilient amid ongoing cost pressures.
BABURAJAN KIZHAKEDATH