China’s smartphone shipments fell 4% YoY in Q1 2026, according to preliminary data from Counterpoint Research’s Market Monitor Tracker. The decline was mainly due to a high base effect from last year’s government subsidy program, as well as rising costs this year.

Commenting on the market trends, Senior Analyst Ivan Lam said, “Due to persistent sluggish demand, the market saw a negligible impact of the government subsidies introduced earlier this year. While February’s Lunar New Year promotions provided a slight boost over January, the magnitude of these discounts was hampered by a sharp increase in memory costs. Rising component costs are already driving up retail prices, affecting both legacy models and the launch prices of new devices. This trend is expected to keep the Chinese smartphone market under significant pressure through the second quarter. However, the premium smartphone segment is resilient, with OEMs bringing in features like breakthrough imaging hardware, foldables and AI agents to drive replacement demand.”

China Smartphone Shipments by OEM Share and Growth, Q1 2025 vs Q1 2026

Huawei led China’s smartphone market in Q1 2026 with a 20% share, the highest since Q4 2020. The Mate 80 series’ supply gradually improved, while government subsidies and promotions during the Chinese New Year supported the strong performance. Shipments of the Enjoy 90 series toward the end of Q1 further helped Huawei maintain its leading position, with the brand’s shipments up 2% YoY. Besides, its heavy reliance on domestic suppliers provides a good cost buffer amid the global memory price surge.

Apple rose to second place in Q1, driven by sustained strong performance of the iPhone 17 series, promotional price cuts and government subsidies. It also recorded the highest growth among the top six brands, with shipments up 20% YoY. Apple is widely viewed as best positioned to navigate the ongoing global memory crunch, supported by its premium product portfolio and strong supply chain management. In the near-to-medium term, it is more likely to absorb rising costs internally and expand its market share.

OPPO ranked third in Q1 following realme’s reintegration. Both brands are undergoing internal product line adjustments. Notably, OnePlus rose 53% YoY in Q1, driven by the strong performance of its Ace 6 and Turbo 6 series, alongside clearer product positioning. Under a profit-first strategy, OPPO was the first to raise prices on selected older models on March 16, which has weighed on consumer demand and dampened replacement momentum.

vivo’s shipments grew 2% YoY in Q1, driven by strong performance of low-to-mid-end models such as the Y50, Y500 and S50. HONOR’s best-selling models X70 and HONOR 500 sustained its growth momentum, while the Magic V6, launched in March, gained solid traction supported by its large battery capacity and strong durability. Xiaomi declined 35% YoY in Q1, mainly due to its core models underperforming versus the previous generation without aggressive promotional cuts, alongside a more cautious pricing strategy amid higher cost pressures.

This year, smartphone OEMs are facing a “double hit” of shrinking shipments and thinning profit margins, with elevated memory costs likely to persist through 2026. As OEMs raise prices on both new and legacy models, the market demand is expected to soften further, with a modest recovery likely in early June, supported by 618 shopping promotions. Against this backdrop of cost pressures, China’s smartphone shipments are expected to decline 9% in 2026, but it will still outperform the global average.

About Counterpoint Research

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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