Apple and Huawei outperform China’s slowing smartphone market

Tuesday 14 July 2026 - 18:50

By: Azzat Manal

Apple and Huawei outperform China’s slowing smartphone market

Apple and Huawei were among the few smartphone manufacturers to post shipment growth in China during the second quarter of the year, outperforming a market that continued to experience weaker demand and rising production costs.

According to recent data from market research firm IDC, smartphone shipments in China declined by 4.3% year over year, reaching approximately 66 million units during the quarter ending June 30. The slowdown reflects softer consumer spending and higher device prices driven by increasing costs for memory chips and other key electronic components.

Despite the broader market decline, Huawei recorded strong shipment growth, reinforcing its position as the leading smartphone brand in China. Apple also delivered impressive results, expanding its market share as demand for iPhones remained resilient despite a challenging business environment.

Industry analysts attribute the performance of both companies to strong brand recognition, customer loyalty, and competitive product portfolios. Huawei has continued to strengthen its domestic presence through technological innovation and premium smartphone offerings, while Apple has benefited from sustained consumer confidence and strategic product positioning.

Meanwhile, several competing manufacturers faced increased pressure from higher manufacturing costs and slower replacement cycles among consumers. Companies across the industry continue to manage rising expenses linked to semiconductor components, particularly memory chips, whose prices have climbed alongside growing global demand for artificial intelligence infrastructure.

IDC analysts noted that some manufacturers previously relied on lower-cost inventories to limit price increases, but those inventories are gradually being depleted. As a result, smartphone makers may face additional pricing challenges during the second half of the year.

The expansion of artificial intelligence technologies has also reshaped the semiconductor market, increasing demand for advanced memory and processing components used in AI servers and high-performance computing systems. This trend has affected supply chains across the broader electronics industry, contributing to higher production costs for smartphones and other consumer devices.

Looking ahead, market observers expect competition in China's smartphone sector to remain intense as manufacturers invest in AI-powered features, improved camera systems, and premium user experiences to attract consumers. While economic conditions remain uncertain, companies with strong ecosystems, innovative technologies, and established customer bases are expected to remain better positioned to navigate the evolving market landscape.