Apple Reclaims No. 1 in China Smartphone Market as iPhone Shipments Jump 28% Amid Chip Shortages

Apple Inc. (AAPL-US) regained the top spot in China’s smartphone market during the December quarter, with iPhone shipments surging 28% year-on-year, according to Counterpoint Research. The rebound was driven by strong demand for the iPhone 17 series, which captured a 20% market share in the quarter. Huawei and Xiaomi (01810-HK) both saw double-digit declines in shipments, while overall market volume fell 1.6% year-on-year. Supply constraints for memory chips—escalating due to increased demand from Nvidia (NVDA-US) AI chips—are pressuring smaller manufacturers unable to secure long-term contracts. Memory prices are expected to rise 40%-50% in Q1 2026 and another 20% in Q2, prompting brands to cut low-end models to preserve margins. Despite this, Apple’s focus on mid-to-high-tier devices has shielded it from supply disruptions. A new government consumer subsidy program is also easing cost pressures. Apple’s full-year 2025 shipments in China rose 7.5%, trailing Huawei slightly at around 17% share each. However, iPhone Air underperformed in China due to delayed launch and compromises in design and features, analysts noted.