iPhone sales increased sharply in China

Data from research company Counterpoint Research published on March 19 shows that the Chinese smartphone market decreased by 4% compared to the same period last year (the period from January to early March each year).

However, Apple “went upstream” here in the context of phone companies having to increase product prices due to increased component costs, especially memory chips, during the AI ​​fever. The Chinese government has deployed a number of subsidies to smartphone manufacturers since last year, but it is assessed that “it does not seem to be very effective in reviving gloomy consumer demand”.

The fact that Apple has become an “exceptional” with double-digit growth, according to Counterpoint, comes from promotions and iPhone discounts on e-commerce platforms. In addition, the standard iPhone 17 version is on the list of eligible to receive state subsidies, helping the actual selling price to users be significantly lower than the listed price, creating great attraction in the context of users tightening their spending.

Along with that, Apple strictly controls the supply chain, helping the company achieve a better position than its competitors, thereby reducing the impact from memory chip supply. “Unlike other smartphone companies, Apple can bear some of the pressure to reduce profits and take advantage of the situation to expand market share,” Counterpoint assessed.

The AI ​​fever is causing component prices to increase at breakneck speed. According to China’s National Development and Reform Commission, DRAM and NAND flash prices have reached their highest level since 2016. Research organization TrendForce pointed out that contract prices for popular configurations of 8 GB RAM, 256 GB internal memory in the first quarter of 2026 increased nearly 200% over the same period last year.

Theo TechCrunchAI data centers are “consuming” a large amount of high-performance memory chips (HBM), causing manufacturers such as Samsung and SK Hynix to prioritize allocating resources to this lucrative market. About 70% of advanced memory chip production capacity currently serves the AI ​​field, causing supply scarcity for the smartphone market.

Theo ReutersChinese Android manufacturers are responding differently depending on each company’s position and supply chain structure. Oppo and Vivo announced price increases for some models from March. Experts say this move is not only to offset costs, but also a way to “probe the reaction” of consumers, as a basis for pricing new product lines in the future.

Meanwhile, Huawei benefits from a domestic memory chip supplier, which has more competitive prices than international competitors, creating a “buffer zone” to help the company reduce pressure from the global chip price fever. According to forecasts, this advantage helps Huawei increase its smartphone market share in the low and mid-range segments, where price sensitivity is very high.

Counterpoint Research predicts that the Chinese smartphone market will continue to be under pressure in the period from March to May and can only “breathe easier” in early June thanks to the wave of mid-year promotions. However, the thirst for memory chips is expected to last until 2030, forcing companies to make difficult choices between controlling costs, protecting profit margins and targeting the number of products shipped.