Apple Surges to Second Place in China Amidst Record Smartphone Market Slump

Apple has secured the second-largest position in the Chinese smartphone market, a significant climb in ranking achieved during a period of intense industry contraction. The company’s share of shipments rose to 19.5% in the third quarter of 2026, marking a sharp increase of 4.8 percentage points compared to the same period last year. This gain allowed Apple to leap from sixth place to second, trailing only Huawei in the domestic rankings.

The broader market context was defined by a steep decline in overall activity. Counterpoint Research reported that smartphone shipments in China fell by 10% year over year, representing the weakest level of sales in fourteen years. Rising costs for memory components have been a primary driver of this downturn, squeezing margins and affecting consumer purchasing power across the sector.

Huawei remained the leader in the market, holding a 21.3% share of shipments. The company’s position strengthened as its share grew by 5.3 percentage points year over year. Along with Apple, Huawei was one of only two major brands to capture additional market share during the quarter. All other leading manufacturers experienced a decline in their relative standing.

The other top brands saw their influence diminish as consumers adjusted their spending habits. Vivo’s share dropped by 2.8 percentage points to 15.2%, while OPPO fell by 1.3 points to 15.1%. Xiaomi also lost ground, with its share decreasing by 1.6 points to 13.5%. HONOR saw a 2.2 point drop to 12.7%, and the combined share of other smaller manufacturers fell by 2 points to end the quarter at 2.8%.

Analysts attribute Apple’s upward trajectory primarily to the reception of its latest hardware. The iPhone 18 Pro series received a strong launch in China, with sales in the first three weeks up 23.5% year over year compared to the previous generation. Counterpoint Research noted that the delayed release of the base iPhone 18 may have encouraged some shoppers to opt for the higher-end Pro models, thereby boosting early sales figures for the premium lineup.

These findings align with, yet differ slightly from, a separate report published recently by IDC. IDC estimated that total smartphone shipments in China fell by 15.4% year over year in the third quarter. While IDC also noted an increase in Apple’s share to 17.8%, it reported that actual iPhone shipments declined by 4.3% during the same period. The two firms offer slightly different perspectives on the magnitude of the market’s contraction.

The domestic trends reflect a broader global slowdown in smartphone demand. IDC described the worldwide picture as weak, estimating that global shipments fell by a record 22% year over year in the third quarter. In this global context, Apple posted the smallest decline among the top five manufacturers, with a drop of just 4%, further highlighting its relative resilience in a challenging market environment.

Looking ahead, experts warn that the difficult conditions may persist into the fourth quarter. Higher device prices are causing consumers to delay upgrades, wait for promotional events, or consider refurbished options. This shift in consumer behavior is expected to place additional pressure on demand as the year draws to a close.