China’s smartphone sales fell 4% YoY in the first nine weeks of 2026, according to Counterpoint Research’s China Weekly Smartphone Sell-Out Tracker. Although government subsidies were introduced at the beginning of the year, market performance over the first two months suggests their impact has been limited, with overall demand remaining weak. Lunar New Year promotions by Chinese brands in February lifted sales compared with January, but soaring memory prices limited the scale of discounts, leaving sales during the holiday period and the preceding three weeks still down 2% YoY.

The rising cost of memory continues to be passed on to downstream vendors. In response, OPPO and vivo have officially announced price increases for some existing models, which will take effect in March. This move is also seen as a test of market sensitivity, allowing companies to gauge consumer reactions to higher prices ahead of upcoming product launches and to inform pricing for next-generation models. If sales are significantly affected, adjustments will be made promptly.

Apple delivered the strongest sales growth over the first nine weeks, rising 23% YoY, supported by e-commerce discounts, while its base iPhone 17 also qualified for government subsidies. With its strong control over the supply chain, Apple is well-positioned to weather the current memory crisis. While Android OEMs are signaling price increases, Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share. Huawei’s heavy reliance on domestic suppliers provides a notable cost buffer amid the global memory price surge, as local suppliers typically offer lower prices than international ones. Huawei is likely to use this opportunity to grab more share in the low-to-mid-end segment.

Looking ahead, China’s smartphone market is expected to remain under pressure from March to May, though some improvement could emerge in early June thanks to 618 shopping promotions. The memory cost surge is likely to persist throughout 2026, forcing smartphone OEMs to make difficult trade-offs between costs, margins, and shipment targets. Brands relying on entry-level models to drive market share will face a significant risk of short-term losses.

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Counterpoint Research is a global market research firm specializing in products across the technology ecosystem. We advise a diverse range of clients – from smartphone OEMs to chipmakers and channel players to Big Tech – through our offices located in the world's major innovation hubs, manufacturing clusters and commercial centers. Our analyst team, led by seasoned experts, engages with stakeholders across the enterprise – from the C-suite to professionals in strategy, analyst relations (AR), market intelligence (MI), business intelligence (BI), product and marketing – to deliver services spanning market data, industry thought leadership and consulting. Our core areas of coverage include AI, Automotive, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks and Infrastructure, Semiconductors, Smartphones and Wearables. Visit our Insights page to explore our publicly available market data, insights and thought leadership, and to understand our focus, meet our analysts and start a conversation.

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