IDC claims that Huawei and Apple are further leading the Chinese smartphone market, and the price increase of chips is intensifying the Matthew effect.

According to data from the international market research firm IDC, Huawei Technologies Co., Ltd. and Apple Inc. further expanded their leading positions in the Chinese smartphone market in the quarter ending in June. Faced with rising prices, consumers either choose to buy high-end models or simply postpone upgrading their phones, leading to increased shipments for both companies. The latest data from the agency shows that tight storage chip supply has forced Android smartphone manufacturers to raise prices, impacting shipments and further intensifying market differentiation. Although the overall Chinese smartphone market declined by 4.3% year-on-year in the second quarter, Huawei, based in Shenzhen, and Apple's iPhone product line both saw shipments increase by about 20% compared to the same period last year. Huawei and Apple dominate the high-end smartphone market in China and are the only two major manufacturers to achieve growth.