iPhone 17 Pricing Helped Apple Buck China's Q2 Smartphone Decline

Apple grew iPhone shipments in China by 24.4 percent year over year in the second quarter of 2026, making it the fastest-growing smartphone brand in a market that shrank overall, according to preliminary figures released today by research firm IDC.

Total shipments in China fell 4.3 percent to roughly 66 million units, amounting to a fifth consecutive quarter of decline. Apple and Huawei were the only major vendors to grow, with Huawei up 19.4 percent.

Apple's share of the Chinese market rose from 13.9 percent to 18.1 percent year over year, which was second only to Huawei's 22.6 percent. Meanwhile, Xiaomi suffered the steepest fall among the big brands, with shipments down 21.7 percent.

IDC attributes the market divergence largely to the way vendors reacted to rising memory and component costs amid the AI infrastructure buildout. Most Android vendors raised prices from late March, but Apple and Huawei held theirs steady, instead introducing targeted promotions.

On top of this, Huawei kept widening its lineup to cover more of the market, while Apple's early warnings of upcoming price increases in the second half of the year encouraged some buyers to purchase iPhone 17 series models sooner than they might have otherwise. "That gave hesitant buyers a reason to go ahead and purchase," said IDC analyst Arthur Guo.

The growth came despite a weak June market, as smartphone sales during China's "618" shopping festival fell nearly 15 percent compared to the same period in 2025.

IDC says it 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 percent in the second half of 2026, right around when 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, reckons IDC.

On the bright side, the research firm believes customers are postponing upgrades rather than walking away from smartphones, so the delayed demand should return in time. On that basis, a recovery could arrive around 2028–2029 as a fresh replacement cycle comes due.