China’s smartphone sales declined 4% year-over-year (YoY) in January and February 2026, largely due to weak demand and a Lunar New Year promotions season that underperformed compared with last year, according to new data from Counterpoint Research.
The research group says that Apple and China-based Huawei are most likely to expand their market share despite the current crisis, leveraging their high-end positioning and strong control over the supply chain.
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. Counterpoint says that, with its strong control over the supply chain, the company is well-positioned to weather the current memory crisis.
While Android manufacturers 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, notes the research group. Counterpoint says memory prices are expected to stay elevated throughout 2026, forcing smartphone manufacturers to “balance margin pressure and shipment targets.”
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