Apple Inc. (AAPL.US) saw a surprising 23% increase in smartphone sales in China at the beginning of 2026, while the Android camp was forced to raise prices due to rising memory costs.

Apple Inc. (AAPL.US) achieved a strong 23% growth in China's smartphone sales in the first nine weeks of 2026, resisting the overall market downturn pressure. Prior to this, some Android phone manufacturers had raised prices due to the rise in memory chip costs. Data released by market research firm Counterpoint on Thursday showed that the overall Chinese smartphone market declined by 4% year-on-year from January to early March this year. Despite the government's introduction of consumption subsidy policies at the beginning of the year, it failed to effectively stimulate weak consumer demand. Apple Inc.'s sales growth was mainly attributed to discounts on e-commerce platforms and policy support for entry-level iPhone 17 models eligible for national subsidies. The report pointed out that Apple Inc.'s strict control over the supply chain makes it more cost-absorbent than its competitors, enabling it to effectively withstand the impact of surging memory chip prices. The market expects Apple Inc. to maintain its current pricing strategy, while competitors are forced to raise prices, potentially allowing Apple Inc. to further expand market share. Counterpoint analysis stated, "Apple Inc. is unlikely to follow suit in raising prices, but will instead bear some profit pressure, using this round of cost crisis to increase market share." Against the backdrop of continuous rise in memory costs, Chinese Android manufacturers OPPO and vivo have announced price increases for some existing models starting this month. Counterpoint believes that this move is not only a response to cost pressures, but also aimed at testing consumer price sensitivity before the launch of new products, providing reference for pricing of the next generation models. Meanwhile, Huawei, relying heavily on local suppliers (whose procurement costs are usually lower than international memory chip manufacturers), has formed an effective cost buffer mechanism. The organization added that Huawei is likely to use this advantage to compete for more market share in the mid-to-low-end market. Counterpoint predicts that the Chinese market will remain under pressure from March to May, but with the start of the "618" mid-year shopping festival in early June, large-scale promotional activities will bring temporary relief. However, pressure from memory chip costs is expected to persist throughout 2026, forcing all phone manufacturers to make difficult balances between cost control, profit maintenance, and shipment volume targets.