Apple Overtakes Chinese Smartphone Brands in Home Market, iPhone Surges Ahead of Xiaomi and Huawei

Apple has emerged as the dominant player in China’s smartphone market, surpassing domestic giants like Xiaomi and Huawei. In the December quarter, Apple recorded a 28% growth in China, a performance that left local brands struggling to maintain their market share.

iPhone 17 Drives Apple’s Surge
The rise in Apple’s sales comes amid a global shortage of memory chips, which has affected smartphone production worldwide. The iPhone 17 captured significant consumer attention, and in the December quarter, one out of every five smartphones sold in China was an iPhone. Meanwhile, Xiaomi and Huawei experienced double-digit declines in sales. Despite a 1.6% overall contraction in China’s smartphone market, Apple strengthened its foothold, demonstrating resilience during challenging market conditions.

Memory Chip Shortages Impact Mid-Range Phones
According to Economic Times, global companies are struggling with a shortage of memory semiconductors used for data storage in smartphones. Chip manufacturers have redirected much of their production capacity toward high-end AI chips for Nvidia, causing supply constraints and price hikes for memory chips. Analysts at Counterpoint Research predict that memory chip prices could rise another 40–50% in Q1 2026 and 20% in Q2, potentially limiting production of lower-priced smartphones.

Premium Segment Remains Unaffected
TSMC CEO C.C. Wei stated that the shortage does not impact all phones equally. Premium smartphones, such as Apple’s models, remain largely unaffected, allowing the company to navigate the crisis better than competitors. Over the past year, Apple and Huawei both held approximately 17% of China’s smartphone market, with Apple achieving 7.5% annual sales growth, highlighting its strong market position.

iPhone Air Faces Slow Start
Apple’s iPhone Air underperformed in China, launching later than other models and receiving a lukewarm response. The delay and feature compromises—aimed at making the device thinner compared to other models—contributed to its slow adoption. In contrast, other models in the iPhone 17 series achieved remarkable success, driving Apple’s dominance in the market.

Challenges Ahead for Competitors
China’s smartphone market is undergoing rapid changes. Domestic brands like Huawei and Xiaomi have suffered significant setbacks due to Apple’s superior marketing and product quality. Analysts predict that mid-range smartphones will continue to face challenges amid memory chip shortages, while companies with strong premium offerings, such as Apple, are likely to benefit. Industry experts suggest that brands like Huawei and Xiaomi may need to revise their strategies to remain competitive in the evolving market.