The start of the year in the Chinese market smart phones This is creating a striking contrast: while the sector as a whole continues to decline, Apple has managed to turn the situation around and string together a strong rebound in iPhone salesData published by the consulting firm Counterpoint suggests that the American company is taking better advantage than its rivals of a challenging environment marked by the rising cost of memory components.
This behavior is seen from Europe as a relevant signal, since China remains one of the key markets for big tech companies and an early indicator of trends that end also affecting consumers in Spain and the rest of the continent, both in terms of model availability and potential price movements.
Apple is growing strongly in a declining Chinese market
According to figures from Counterpoint, in the first weeks of 2026 sales of Smartphones in China fell by 4%. year-on-year. However, during that same period, Apple clearly bucked the trend: iPhone shipments in the country skyrocketed. 23% compared to the previous year, becoming the great exception within one of the most competitive markets in the world.
The consultancy points out that this progress is occurring against a backdrop of weakened overall demand, implying that Apple is not growing thanks to a market surge, but rather gaining market share against other manufacturersIn January, when total smartphone sales plummeted 23% year-on-year, Apple was the only major brand to improve its results, with an 8% increase that month.
In aggregate terms, the volume traded during the Lunar New Year holiday period and the three weeks prior was still 2% lower than the figure recorded a year earlier. Despite promotional campaigns, the Chinese market thus shows clear symptoms of chillingThis is something that is also being monitored from Europe because of its potential ripple effect on the global industry.
Counterpoint analysts summarize the situation with a simple idea: while the sector is declining, Apple is advancing. This divergence suggests that the company is using the current situation to strengthen its position. structural competitive position In China, this is a move with potential impact on its international presence, including in Europe.
Discounts, subsidies, and supply chain advantages
A significant part of the iPhone's success in China is related to its pricing and promotional strategy. The report indicates that Apple's momentum has been supported by aggressive discount campaigns on major e-commerce platforms, which has brought their devices closer to a more price-sensitive audience at a time of economic uncertainty.
The basic model of the iPhone 17 has benefited from the subsidies from Chinese public programsThis support has improved its competitiveness against other devices in a similar range. This combination of government aid and online discounts has allowed the iPhone to gain visibility in segments where local manufacturers and Android traditionally held more sway.
Counterpoint also underscores the role of the supply chain in this scenario. According to their analysis, Apple's tight control over its component suppliers allows it to better manage the current situation. memory chip price crisisWhile other manufacturers are passing on some of the increased costs to the final price, the consultancy considers it unlikely that Apple will act in the same way, at least in the short term.
In practice, this means the company would be willing to absorb some of the pressure on its margins in order to maintain competitive prices and capitalize on the situation to continue gaining ground. This approach contrasts with the position of several Android rivals, who have already announced price increases to protect their profitability, which could reduce their market traction in a fragile demand environment.
Effects of the memory increase: pressure for Android and opportunity for Huawei
The underlying factor currently shaping the global mobile market is the increased cost of memoryA critical component in smartphone manufacturing. Counterpoint had already revised its global shipment forecasts for 2026 downwards precisely for this reason, and now warns that price pressure on these chips is expected to continue throughout the year.
In China, this price increase has reduced brands' room for maneuver when launching strong promotions. Although Lunar New Year campaigns helped to slightly improve sales in February compared to January, the escalating price of memory limited the depth of discounts, so the volume sold during that period remained low. slightly below the previous year.
This environment presents many Android manufacturers with a difficult dilemma: accept lower margins to maintain sales volumes or pass the extra cost on to the consumer and risk losing market share. Brands that rely heavily on entry-level terminals According to the consultancy, those companies that need to maintain their market presence are at the greatest risk of registering losses in the short term.
In parallel, the analysis suggests that Huawei could capitalize on this context, especially in the low-end and mid-range segments. Its heavy reliance on local suppliers provides it with a additional cushion against global escalation of memory prices, which could allow it to be more flexible in setting prices than some of its international competitors.
Counterpoint interprets this scenario as a window of opportunity for both Apple and Huawei: the former strengthens its brand image as resistant to cost crises, and the latter reinforces its domestic presence in the price segments where much of the battle for volume is fought, with possible effects on the supply available in markets such as Europe in the medium term.
A weak Chinese market despite government aid
Beyond the strategies of each manufacturer, the Counterpoint report insists that the Overall demand in China remains fragileDespite the introduction of subsidies by Beijing to boost smartphone sales, the performance of the first two months of the year suggests that the effect of these subsidies is limited and not enough, on its own, to reverse the downward trend.
Total smartphone sales fell 4% year-on-year in the first weeks of the year, and although Lunar New Year-related promotions have partially mitigated the impact, they haven't been enough to return the market to positive figures. This pattern of prolonged weakness is being closely watched in Europe, where any slowdown in Chinese demand can influence production decisions, pricing, and the launch of new models that eventually reach Spain and other EU countries.
Looking ahead to the coming months, the consultancy predicts that Chinese smartphone market continues under pressure between March and May, with the possibility of some improvement from the beginning of June. The central scenario, however, remains that of a year marked by the tension between rising costs, restrained demand, and strong competition between brands.
In this context, companies will have to carefully balance three variables: controlling component costs, protecting their margins, and meeting their shipping targets. The decisions they make now could later translate into changes in their product offerings and pricing policies in Europe, including the Spanish market, where many users are extending the lifespan of their phones and delaying upgrades.
Apple's position in China after the start of 2026 is therefore interpreted as an indicator of its ability to manage adverse cycles without immediately resorting to widespread price increases. If it maintains this strategy, it could continue to gain ground both in the Asian market and in other territories, while much of the sector continues to grapple with an uncomfortable combination of rising costs and stagnant sales.
With a Chinese market that continues to decline, rising memory costs, and limited government support, Apple's success in increasing iPhone sales in the Asian country by 23% underscores the importance of good supply chain management, careful pricing, and strong brand positioning; factors that, viewed from Spain and the rest of Europe, help anticipate how prices, promotions, and the availability of new smartphone models might move in the coming months.
