Apple's iPhone Surge Lifts It to No. 2 in China as Market Hits 14-Year Low

China's smartphone shipments fell to their lowest level in over a decade during the third quarter of 2026.

According to a report from Counterpoint Research, the country's market shrank by 10% compared with the same period last year. The decline was driven in part by climbing memory prices, which have weighed on the industry's production costs. The broader environment reflects a difficult global picture as well. A separate estimate from IDC, released just days earlier, put global smartphone shipments down by a record 22% year over year.

Despite these headwinds, Apple managed to climb to second place in China for the quarter. The firm captured 19.5% of shipment share, a rise of 4.8 percentage points from a year prior. This performance pushed Apple up from sixth place, trailing only Huawei. Counterpoint noted that the launch of the iPhone 18 Pro series was a key factor in this momentum, with sales for that lineup seeing a strong start in the region.

Huawei retained the top position with 21.3% of the market, having increased its share by 5.3 percentage points year over year. Huawei and Apple were the only two major brands among the top six to gain shipment share during the quarter. All other leading manufacturers saw their portion of the market decline.

Vivo dropped to 15.2% after falling 2.8 percentage points, while OPPO slipped by 1.3 points to 15.1%. Xiaomi's share decreased by 1.6 points to 13.5%, and HONOR declined 2.2 points to 12.7%. Aggregated data for other manufacturers also fell, ending the period at 2.8% after a 2 point drop.

Counterpoint reported that sales for the iPhone 18 Pro series in the first three weeks after launch were up 23.5% compared with the iPhone 17 Pro series. The firm suggested that the delayed arrival of the base iPhone 18 model may have nudged some shoppers toward the Pro variants, contributing to the early sales figures. Regarding Apple's specific performance in China, Counterpoint stated that the lineup saw a strong launch in China.

Estimates from other firms vary regarding the scale of the market contraction. IDC reported that shipments in China fell by 15.4% year over year during the quarter, while Apple's share of that total rose to 17.8%, even as iPhone shipments declined by 4.3%. On a global scale, IDC noted that Apple posted the smallest decline among the top five manufacturers, at just 4%.

Looking ahead, Counterpoint warned that demand may continue to soften. Higher smartphone prices are causing consumers to delay upgrades, wait for promotional periods, or purchase refurbished devices instead. This behavior could place additional pressure on demand in the fourth quarter. Apple's recent performance suggests that consumers may be willing to pay a premium for specific high-end devices, even as overall shipment volumes contract due to rising component costs.