SerpApi.Org
China’s smartphone market is shrinking, but Huawei and Apple are comfortably bucking the trend. According to preliminary Q2 2026 data from Counterpoint Research, overall smartphone shipments in China fell 2% year-over-year. The dip is largely tied to a sharp spike in memory and storage costs, forcing manufacturers to abandon volume growth in favor of protecting their profit margins.
Component inflation forces OEMs to rethink growth strategies
Huawei led the market in Q2, capturing a 23% share, its highest since late 2020. The company posted a 24% year-over-year increase in shipments, driven by steady demand for the Enjoy 90 Pro Max and the successful launch of the Pura X Max. The Pura X Max’s wide-foldable form factor is proving there is still untapped momentum in the premium foldable segment.
Apple matched that growth, with shipments also rising 23% year-over-year. As rising component costs force Android OEMs to hike their retail prices, Apple’s relatively stable pricing for the iPhone 17 series has made it increasingly competitive. Counterpoint says that consumer expectations of an impending iPhone price hike in Q3 have also prompted many buyers to upgrade early.
Meanwhile, Chinese Android makers are feeling the squeeze. Brands like Oppo, Vivo, and Xiaomi are scaling back low-end production to focus on profitability, leaning on reliable mass-market releases like the Reno 16, Y600 Pro, and Redmi K90 series to cushion the decline.
The hardware market is only going to get more expensive. Manufacturers coasted through the first half of 2026 by using cheaper memory inventory purchased late last year. As higher-cost components finally reach the assembly lines in the second half of 2026, consumers should brace for another wave of price increases across the board.
This component squeeze is hitting even harder elsewhere. In India, Q2 shipments just saw their steepest drop in six years, falling 10% as average prices jumped 15%. The budget sector was devastated, though premium devices remained resilient. While Vivo held the top spot and Nothing managed a rare 105% growth spurt with its Phone (4a), Counterpoint expects the Indian market to shrink 13% this year as affordability becomes an unavoidable global hurdle.
For more daily updates, please visit our News Section.
Stay ahead in tech! Join our Telegram community and sign up for our daily newsletter of top stories!
The post Huawei and Apple grow despite a 2% decline in China’s smartphone market in Q2 2026 appeared first on Gizmochina.
