iPhone shipments in China surged 20% in the first quarter! Rising memory prices raise the threshold for domestic phones, while Apple and Huawei buck the trend and show strong performance.

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Amid overall pressure in China’s smartphone market, Apple has emerged as the standout winner among major manufacturers in the first quarter, boasting a 20% growth in shipments.

According to market research firm Counterpoint Research, Apple’s iPhone shipments in China increased by 20% year-on-year in the first quarter, the fastest growth among major brands. Meanwhile, surging memory chip prices pushed up overall industry costs, compounded by supply chain disruptions, resulting in a decline in China’s overall smartphone shipments and impacting most domestic brands.

Apple ranked second with a 19% market share, trailing only Huawei, which maintained the top position with a 20% share. Ivan Lam, Senior Analyst at Counterpoint Research, noted that Apple’s perceived value has become increasingly prominent as competitors have generally raised prices.

Ivan Lam expects Apple to maintain a relatively stable performance in the second quarter and continue to benefit in an environment where domestic brands are further increasing prices.

According to Counterpoint, memory prices are set to surge dramatically in the second half of 2025, bringing significant cost pressures to the global smartphone industry, especially impacting the low-end market. In the second half of 2025, sales of smartphones priced below $150 are projected to drop by 11% year-on-year.

Huawei grows against the trend, gains on both high and low-end lines

In the first quarter, rising memory chip costs forced several domestic manufacturers to raise prices of entry-level models to maintain profit margins. Ivan Lam pointed out that in this context, Apple’s relative value stands out even more—when competing products increase in price, Chinese consumers’ perception of at least three years of use for Apple products becomes a key factor supporting their purchasing decisions.

Huawei also bucked the downward market trend, with its shipments in the first quarter rising slightly by 2%, keeping it firmly in the top spot with a 20% market share. Ivan Lam said Huawei’s growth was driven by strong performance across both high-end and mid-to-low-end product lines. The Enjoy 90 series stood out particularly in the budget segment, effectively driving overall shipment scale.

Domestic brands under pressure, divergence intensifies

Most domestic brands saw notable declines in shipment volume in the first quarter. Xiaomi’s drop was the most pronounced among major manufacturers, falling to sixth place in the industry. Ivan Lam attributed this mainly to a high base effect—last year, Xiaomi benefited from aggressive price cuts and government subsidies, leading to a surge in shipments and a higher comparison base. OPPO and Honor also saw small decreases in shipment volume, while vivo recorded slight positive growth thanks to strong sales during the Lunar New Year holiday.

Looking ahead to the second quarter, Ivan Lam expects even greater pressure on the industry, with domestic brands’ intentions to further raise prices set to continue creating market resistance. However, he believes Apple and Huawei are positioned to perform relatively better amid the overall headwinds. “Huawei is likely to achieve further shipment growth with continued demand for its low-end devices,” he said.

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