Smartphone sales in China took a slight hit in the first two months of 2026 as shipments fell by 4% compared to the same period last year. According to Counterpoint Research’s China Weekly Smartphone Sell-Out Tracker, demand for new smartphones in China was lower than anticipated despite a new wave of government subsidies and promotions during the Lunar New Year.
Chinese brands saw some traction in February during the Lunar New Year holiday period, which was a minor improvement in shipments compared to the values for January. With rising memory prices and OEMs like vivo and Oppo already confirming that they will have to raise device prices, the outlook for the rest of 2026 is not looking great.
Despite slumping sales for the majority of brands, the new report also outlines that some OEMs like Apple and Huawei are projected to expand their market share this year, despite the challenging circumstances.
According to Counterpoint analysts, Apple saw a 23% increase in smartphone sales during the first two months of 2026, fueled by strong demand for the iPhone 17. Apple is expected to leverage its strong supply chain connections to absorb higher component costs.
Huawei, on the other hand, has built up a resilient domestic supply chain, which will serve as a cost buffer against surging memory prices on the global market. Looking ahead, Counterpoint expects turbulent times between March and May, while hopes are that the 618 shopping festival in June could lead to some increase in demand.
