In the second quarter of 2026, Apple grew its iPhone shipments in China by 24.4% year over year, making it the fastest-growing smartphone brand in a shrinking market, according to preliminary data released today by research firm IDC. Total shipments in China fell 4.3% to approximately 66 million units, marking the fifth consecutive quarter of decline.
Apple and Huawei only major vendors to grow as Xiaomi drops 21.7%
Among major vendors, only Apple and Huawei managed to grow. Huawei's shipments increased by 19.4% year over year, lifting its market share to 22.6%. Apple's share rose from 13.9% to 18.1%, placing it second. Xiaomi suffered the steepest decline among big brands, with shipments down 21.7%. Pricing strategy played a key role in these divergent outcomes.
IDC analysis: component costs and divergent strategies
IDC attributes the market divergence largely to how vendors reacted to rising memory and component costs driven by AI infrastructure buildout. Most Android vendors raised prices from late March, while Apple and Huawei held prices steady and introduced targeted promotions. Additionally, Huawei kept expanding its lineup to cover more market segments, while Apple's early warnings of potential price increases in the second half of the year encouraged hesitant buyers to purchase iPhone 17 series models sooner. According to IDC analyst Arthur Guo: "That gave hesitant buyers a reason to go ahead and purchase."
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Growth despite weak June and 618 festival sales drop
The growth came despite a weak June market, as smartphone sales during China's "618" shopping festival fell nearly 15% compared to the same period in 2025. Apple's strong performance highlights the effectiveness of its commercial strategy in a challenging macroeconomic environment.
Future outlook: IDC expects further decline before recovery
IDC expects conditions to deteriorate over the next couple of years. As vendors run down cheaper component inventory, the firm forecasts China's year-over-year decline could widen to around 20% in the second half of 2026, around the time Apple is expected to launch its new iPhone 18 Pro models and first foldable iPhone. Storage prices are unlikely to ease meaningfully before 2027, and a broader recovery is not expected until 2028 or 2029. On the bright side, IDC believes customers are postponing upgrades rather than abandoning smartphones, so deferred demand should return once a new replacement cycle arrives. For more on AI infrastructure's impact on costs, see the related article SANS ISC Finds Systematic Scans of MCP Servers and AI Credentials on Web Hosts.
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Source: https://www.macrumors.com/2026/07/14/iphone-17-pricing-helped-apple-china-q2-26
