Withstanding the pressure of rising chip prices, Apple's iPhone shipments surged 28% in Q4, reclaiming the top spot in the Chinese smartphone market.

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Despite the increasingly severe challenge of a critical storage chip shortage, Apple regained the top spot in the Chinese smartphone market during the holiday season thanks to strong market performance. Driven by demand for the iPhone 17 series, Apple’s shipments in China surged 28% year-over-year in the fourth quarter, demonstrating the unique resilience of high-end devices in a turbulent market environment.

On January 19, according to Bloomberg citing data from Counterpoint Research, Apple phones reclaimed the top spot in the quarter ending in December, accounting for one-fifth of total shipments in the Chinese market. Looking at the full year of 2025, Apple’s shipments in China grew by 7.5%, trailing closely behind Huawei, the number one brand, with about a 17% market share—the gap between the two is very small.

The report pointed out that the industry is currently facing an increasingly severe shortage of semiconductors used for device data storage. This is mainly because memory chip makers are shifting more production to supply Nvidia with high-end AI storage chips. Although this shortfall has driven up prices and squeezed smaller manufacturers unable to secure long-term supplies, Apple, thanks to its high-end market positioning, has effectively resisted the impact of supply chain fluctuations.

Analysts note that storage chip price pressures are expected to persist into the first half of 2026. Counterpoint analysts predict that memory prices will further rise by 40% to 50% in the first quarter of 2026, followed by another increase of about 20% in the second quarter. This will force smartphone manufacturers to optimize their product portfolios, especially by cutting low-end models to maintain profit margins.

Resilience in the High-End Market

Against the backdrop of a declining overall market, high-end smartphones have demonstrated immunity to the memory chip crisis.

According to a Wallstreetcn article, TSMC CEO C.C. Wei emphasized at last week's earnings call the uneven impact of the chip shortage on the market, noting that high-end smartphones are minimally affected.

Bloomberg reported that Apple, whose entire product lineup is positioned at the high end of the market, has shown the greatest resilience.

Looking at the full year 2025, Apple’s shipments in China grew by 7.5%, closely trailing the top local competitor with about 17% market share and a very small gap between them.

In addition, a new round of consumer subsidy policies in China has also helped manufacturers ease cost pressures to some extent.

Although Apple's overall performance was strong, not all product lines were flawless. The new iPhone Air model was launched later in China than in other regions, and its sales performance did not meet expectations.

Counterpoint analyst Ivan Lam stated:

"The performance of iPhone Air was poor. The late launch and the compromise between thinness and features led to a slow start."

This indicates that even market leaders can see sales of specific models dragged down by missteps in product strategy or timing, although this did not shake Apple’s overall leading position in quarterly shipments.

Warning of Memory Chip Price Surge

From Micron to end device manufacturers, more and more companies are issuing warnings about the uncertainty of the memory semiconductor shortage. This shortage is not only driving up costs, but is also reshaping the market landscape.

Counterpoint analysts wrote in their report:

"Looking ahead, memory prices are expected to rise sharply. Smartphone OEMs are expected to optimize product portfolios, focusing on cutting low-end models to maintain profit margins."

This trend means that in a high chip cost environment, brands with strong pricing power will be more competitive than those dependent on low-margin volume sales.

Risk Warning and DisclaimerThe market carries risk, and investment should be conducted cautiously. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of any particular user. Users should consider whether any opinions, views, or conclusions herein fit their specific circumstances. Investing accordingly is at your own risk.

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