Apple’s (NASDAQ:AAPL) iPhone shipments in China rose 20% in the first quarter, marking the strongest growth among major smartphone vendors, even as the overall market contracted due to rising memory chip costs, according to data from Counterpoint Research.
The U.S. technology giant climbed to second place during the quarter, supported by steady demand for its iPhone 17 lineup, promotional pricing strategies, and government-backed subsidies. It also recorded the fastest growth rate among the top six brands over the period.
Counterpoint noted that Apple appears best positioned to navigate the ongoing global memory shortage, pointing to its premium product range and effective supply chain management. “In the near-to-medium term, it is more likely to absorb rising costs internally and expand its market share,” the firm said.
Total smartphone shipments in China declined by 4% between January and March, weighed down by supply chain disruptions and higher chip prices.
“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,” said Counterpoint analyst Ivan Lam.
“However, the premium smartphone segment is resilient, with OEMs bringing in features like breakthrough imaging hardware, foldables and AI agents to drive replacement demand,” he added.
Huawei, Apple, and Vivo were the only leading manufacturers to post growth despite the broader market downturn. Huawei maintained its top position with a 20% market share and recorded 2% growth, driven by demand across both its premium devices and more affordable models such as the Enjoy 90 series. Apple followed with a 19% share.
Vivo also reported 2% year-on-year growth, supported by mid- to lower-tier models including the Y50, Y500, and S50.
Meanwhile, Xiaomi slipped to sixth place after shipments dropped 35%, a decline Lam attributed largely to a high comparison base following strong promotional activity and subsidies in the same period last year.