Apple grew iPhone shipments in China by 24.4 percent year over year in the second quarter of 2026, the fastest growth rate among any major smartphone brand in a market that shrank overall by 4.3 percent. The company’s market share jumped from 13.9 percent to 18.1 percent, putting it in second place behind Huawei’s 22.6 percent and leaving competitors like Xiaomi, Samsung, and OPPO far behind.
The divergence comes down to Apple’s pricing strategy. When component costs spiked starting in late March, most Android vendors raised prices but Apple and Huawei did not. Instead, Apple offered targeted promotions, including a 1,000-yuan (around $138) discount on the iPhone 17 Pro series during China’s 618 shopping festival in May. The cuts appeared on JD.com and Tmall, including Apple’s official store, and signaled confidence in the iPhone 17 line at a moment when other vendors were chasing margin over volume.
The iPhone 17 family has become Apple’s most popular lineup on record, according to CFO Kevan Parekh. Demand pulled forward partly because Apple had already signaled price increases on its second-half products; consumers who might have waited instead bought into the current generation sooner. That timing, combined with strong brand pull, allowed Apple to grow even as China’s overall smartphone market declined for the fifth consecutive quarter to roughly 66 million units.
Xiaomi paid the steepest price for the sector’s miscalculation. The company’s shipments fell 21.7 percent, the largest drop among major vendors. Huawei, by contrast, grew 19.4 percent, matching Apple’s decision to absorb cost pressures rather than pass them on.
The win in Q2 looks like a tactical victory in a lengthening war. IDC forecasts China’s smartphone market will contract by around 20 percent in the second half of 2026, right when Apple plans to launch the iPhone 18 Pro and its first foldable iPhone. Storage prices are unlikely to ease meaningfully before 2027, and a broader recovery will not arrive until 2028 or 2029.
That pressure is already forcing Apple’s hand on pricing as IDC now predicts the iPhone 18 Pro could cost up to $200 more than the current generation, a significant jump from the earlier prediction of a $100 increase for the Pro and Pro Max models and a $50 increase for the base model. Apple’s ability to undercut competitors through steady iPhone 18 pricing in China has an expiration date, and that date is arriving in the second half of this year.
The 618 shopping festival itself deteriorated nearly 15 percent year over year despite Apple’s growth, a sign that Apple is winning share by taking it from rivals rather than by expanding the overall market. That is sustainable for a quarter or two but it is not feasible if iPhone 18 pricing forces consumers back to Samsung or Xiaomi, especially when component costs are finally falling and competitors can afford to price aggressively again.
