iPhone sales in China are doing better than the rest of the market, says IDC.
The iPhone is one of the bright points of China's contracting smartphone market, seeing massive growth thanks to not raising its prices.
The global RAM crisis is a problem for the entire tech industry and is also affecting consumer spending. However, while Apple fights the same problem as everyone else, it is one of the few winners in China's smartphone market.
In a July 14 report from IDC into the smartphone market in China for the second quarter of 2026, the industry is in decline. With shipments at 66 million units for the quarter, that's the fifth straight quarter of decline and a drop of 4.3% year-over-year.
The list of top ten companies by market share has only two companies growing during the period versus the Q2 2025 figures. Apple was one, but Huawei was the other.
Huawei is in first place with a 22.6% market share, managing 19.4% growth. Apple is in second with 18.1%, up from 13.9%, but with a massive 24.9% growth instead.
The report offers a different viewpoint to Apple's performance in China. On July 7, Counterpoint said Apple's Chinese sales are down 9% year-over-year, but saw its market share grow to 18%, amid a general 13% market decline.
Pricing strategy
As for why Apple and Huawei stood out in the quarter, IDC explains that the period was marred by difficult trading conditions. That includes the memory and component prices, which led to Android vendors raising prices or cutting their configurations.
There is also the problem of a fading lift from government subsidies. It turns out that temporary free money from the government as an incentive to spend money isn't a long-term strategy for success.
This was observed during the 618 shopping festival, as IDC says smartphone sales dropped by close to 15% compared to 2025's festival.
Apple and Huawei both moved in different ways to the market as a whole. Both maintained their prices amid a rising field, as well as adding targeted promotions.
For Apple especially, its early warnings of price rises later in 2026 helped bring some consumers to upgrade to the iPhone 17 series earlier than usual.
That said, the improvement in market share could easily be undone by Apple's inevitable iPhone price rises. It hasn't done so yet, but it certainly will this fall with the iPhone 18 generation.
At that point, Apple's pricing advantage over the Android-based rivals will be significantly reduced. Expect market share reports after that time to comment on the price rises as Apple fights to maintain its new higher market share.
While IDC forecasts that the component cost issue will continue pressuring the market well into 2027, there is light at the end of the tunnel. In the long term, AI-focused hardware has the potential to revive upgrade demand by 2028 or 2029.
SOURCE:https://appleinsider.com/
FAQ
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Why is Apple's market share growing in China right now? Mostly because Apple kept iPhone prices steady while its Android competitors were forced to raise theirs. A global memory chip shortage pushed up component costs across the industry, and most Android brands passed that cost onto buyers. Apple didn't, at least not yet, so it looked like the better deal by comparison.
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Which Android brands are losing the most ground? OPPO, vivo, and Xiaomi all saw shipments drop double digits year-over-year in Q2 2026. OPPO and vivo tied for third place with 16.0 percent of the market, with shipments falling 9.7 percent and 11.4 percent respectively, while Xiaomi's share dropped to 12.4 percent after a 21.7 percent decline. Huawei is the one major exception — it's still growing. iClarified
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Is Huawei also gaining share, or is this just an Apple story? Huawei is actually in first place, and growing faster in percentage terms than Apple. Both companies held prices steady while the rest of the Android field raised them, and both leaned on targeted promotions — Huawei by widening its lineup, Apple by leaning on brand loyalty and early hints of price hikes to come. MacTech
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Will Apple's price advantage last? Probably not for long. Analysts expect Apple to raise iPhone prices later this year with the next generation, which would close the pricing gap that's currently working in its favor. Once that happens, Apple's pricing advantage over Android rivals will shrink significantly, and future market share reports are expected to reflect that shift. AppleInsider
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Is the overall Chinese smartphone market growing or shrinking? Shrinking — this was the fifth straight quarter of decline, with total shipments down over 4% year-over-year. Rising component costs and fading government subsidies are the main drags, and IDC expects the second half of 2026 to be even rougher for the industry overall.