Key insights
- Apple's iPhone shipments in China grew 20% in Q1, bucking the overall market decline. This suggests strong demand for Apple's products and effective supply chain management, positioning them well to navigate rising component costs. While the broader Chinese smartphone market faces pressure, Apple's resilience in the premium segment could positively influence its overall financial performance and investor sentiment.
Investing.com -- Apple’s iPhone shipments in China jumped 20% in the first quarter, the strongest growth among major vendors, even as the broader market contracted amid rising memory chip costs, according to data from Counterpoint Research.
The U.S. tech giant climbed to second place in the quarter, supported by sustained demand for the iPhone 17 series, promotional price cuts and government subsidies. It also posted the highest growth rate among the top six brands in the period.
Counterpoint said Apple is seen as best positioned to weather the ongoing global memory crunch, citing its premium product lineup and 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 wrote.
Overall smartphone shipments in China fell 4% in the January-to-March period, weighed down by supply chain disruptions and soaring 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 top vendors to buck the broader decline. Huawei, which retained the top spot with a 20% market share, posted 2% growth, lifted by demand across its high-end and budget ranges including the Enjoy 90 series. Apple followed with a 19% share.
Vivo also grew 2% year-on-year, driven by mid-to-low-end models including the Y50, Y500 and S50.
Xiaomi, meanwhile, tumbled to sixth place after shipments fell 35%, a drop Lam attributed largely to a high base effect following aggressive promotions and subsidies that boosted its sales in the same period a year earlier.