China smartphone shipments dip as memory shortages bite; Huawei edges ahead, iPhone surges

Market snapshot

It has been reported that China’s smartphone shipments fell 4% year‑over‑year in Q1 2026, according to Counterpoint Research’s preliminary Market Monitor data. The drop wasn’t a one-off glitch — analysts point to a high base from last year’s government subsidies and a sharp rise in memory prices that’s already lifting retail tags. Who pays the price? Consumers, primarily. Demand is sluggish, discounts had less punch than hoped, and OEMs are feeling the squeeze.

Winners and why they matter

It has been reported that Huawei led the market with a 20% share and shipments up 2% YoY, helped by improving Mate 80 supply, the Enjoy 90 tail‑sales and heavy reliance on domestic suppliers that soften the blow of global memory inflation. Apple vaulted to second with a reported 19% share and 20% shipment growth — the best growth among the top six brands — driven by the iPhone 17 series, tactical price cuts and a supply chain that can better absorb component cost shocks. Premium phones are holding the line; the rest of the market? Not so lucky.

The rest of the field and rising tensions

OPPO sits third after bringing realme back under the wing; internal lineup tweaks and a March 16 price bump on older models have cooled demand. OnePlus popped 53% YoY on Ace 6 and Turbo 6 momentum. vivo eked out 2% growth on budget and midrange hits, HONOR kept pace with X70 and HONOR 500 models while the Magic V6 found traction, and Xiaomi plunged 35% as core models underperformed and the brand stayed cautious on promotions. In short: some brands are sprinting, others are tripping over cost pressures.

Outlook

Counterpoint warns that elevated memory costs will likely persist through 2026, delivering a “double hit” of shrinking volumes and thinner margins; full‑year shipments may fall about 9% but still outpace the global average. Expect more price hikes on new and legacy models, and a modest recovery only if 618 shopping promotions spark replacement demand in June — China’s answer to Prime Day. Tighten your belt, smartphone shoppers. The premium end will be interesting to watch; it’s where the battle for share and margin will play out.

Sources: counterpointresearch.com