Apple stood out in China’s smartphone market in January 2026. While most major brands reported sharp year-over-year declines, Apple posted growth. The contrast highlights how subsidy timing and seasonal shifts shaped this year’s results.
The broader market struggled because of tough comparisons with last year. In January 2025, strong demand and government support lifted sales across China. This year, those same brands faced weaker numbers as that temporary boost faded.
Counterpoint Research reports that Apple recorded an 8 percent year-over-year (YOY) sales growth in China for January 2026. In comparison, other major smartphone OEMs saw double-digit percentage declines. A market chart from the firm showed Apple gaining share while competitors dropped significantly.
The gap largely reflects what analysts call a high base effect. In January 2025, China introduced a subsidy program for smartphones. Buyers who purchased a device priced at 6,000 Yuan received a subsidy of up to 500 Yuan, equal to 15 percent of the price. At the same time, the Lunar New Year arrived earlier than usual. Together, these factors inflated January 2025 sales and created difficult comparisons for January 2026.
Apple did not participate in the subsidy program at the start. The company joined in June 2025. As a result, it avoided the heavy base effect in early 2026 but is likely to face similar pressure in the summer of 2026 when its own subsidy-driven sales come up for comparison.
China has also started phasing out smartphone subsidies. In addition, consumer sentiment has softened. These factors have slowed overall market momentum. Brands have responded with targeted discounts to defend volumes and maintain market share.
Meanwhile, Apple has benefited from strong demand for the iPhone 17 Pro Max in China. Reports suggest that the Cosmic Orange color has gained attention because it resembles the signature shade associated with Hermès. That perception has helped position the device as a luxury product among some consumers.
For now, Apple leads in growth. However, the subsidy cycle and shifting demand will test every brand in the months ahead.
