The smartphone market in China saw a massive drop during the third quarter of 2026. Total phone shipments fell by ten percent compared to last year, hitting the lowest point for this time of year since 2012. While most local phone makers struggled to find buyers, Huawei and Apple both managed to beat the downward trend. The two companies took home forty percent of the entire market, showing that premium phones still sell well even when the broader industry struggles.
Memory costs drive Chinese smartphone sales to lowest since 2012
According to preliminary market data by Counterpoint Research, this ten percent drop largely comes down to supply chain problems. A steady rise in memory part prices has made it much more expensive to build a new phone. This created serious supply shortages and forced many brands to rethink how they sell their devices.
To handle these higher costs, several Android makers started offering new pricing tiers. For example, OPPO launched a slightly more affordable version of its main phone. This tactic helps the brand absorb the higher parts cost without raising the starting price of its best model too much. The pricing pressure is hurting the whole industry, reaching far beyond local borders to impact massive global players like Samsung as well.
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Apple and Huawei grow market share despite raising device prices
Huawei claimed the top spot in the region for the third quarter with a 21.3 percent market share. The company saw 19 percent shipment growth compared to last year, driven by high demand for its Nova 16 and Mate 80 models. However, Huawei officially raised its prices in September, which could hurt its sales momentum in the months ahead.
Right behind Huawei, the American tech giant claimed 19.5 percent of the market. The early launch of the iPhone 18 Pro series was a huge hit in the region. Sales for this premium tier jumped 23.5 percent in the first three weeks compared to last year’s pro lineup. The company decided to delay the release of the base iPhone 18, which likely pushed a lot of customers to buy the more expensive pro models instead. Because the price gap between a top-tier Android device and an iPhone has gotten smaller, the company found itself in a much better competitive spot.
With major brands now passing their inflation costs down to the buyer, average people are simply refusing to upgrade. Shoppers are keeping their current phones longer, waiting for holiday discounts, or buying refurbished models. If parts get any more expensive, smartphone makers will face a very difficult fourth quarter trying to convince people to buy brand new hardware.
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