Apple Surges as China Market Contracts

Apple secured the second largest market share in China during the third quarter, a significant rise that stands out against a backdrop of historic weakness in the regional smartphone sector. The company captured 19.5% of all device shipments in the region, marking a 4.8 percentage point gain over the previous year. This performance propelled the brand from sixth place to just behind Huawei, which remains the market leader.

The broader industry has faced severe headwinds recently. Data from Counterpoint Research indicates that total shipments in China fell by 10% compared to the same period in 2025, hitting the lowest level seen in fourteen years. Rising costs for memory components have weighed heavily on the sector, squeezing margins and reducing overall volume. Despite this downturn, Apple and Huawei were the only two major brands to expand their presence. All other top competitors lost ground during the quarter.

The shift in market dynamics has been driven by strong consumer reception of new hardware. Counterpoint notes that the iPhone 18 Pro series launched successfully in the region. Sales for the first three weeks were up 23.5% year over year when compared to the previous generation. Analysts suggest that the delayed release of the standard iPhone 18 model may have encouraged buyers to opt for the premium Pro variants, thereby boosting early sales figures for Apple.

Rival manufacturers have struggled to maintain their footing. Vivo saw its share drop by 2.8 points to reach 15.2%, while OPPO declined by 1.3 points to 15.1%. Xiaomi fell 1.6 points to 13.5%, and HONOR dropped 2.2 points to 12.7%. Smaller players combined lost 2 points, ending the period with a 2.8% share. Huawei, the sole company ahead of Apple, increased its hold by 5.3 points to reach 21.3%.

These figures align with a separate assessment released recently by IDC, though the two firms offer varying estimates of the decline. IDC reported a steeper 15.4% year over year drop in Chinese shipments. That firm calculated Apple's share at 17.8%, noting that actual iPhone units sold decreased by 4.3%. On a global scale, IDC described the quarter as weak, estimating that worldwide shipments fell by a record 22%. Apple experienced the smallest drop among the top five manufacturers, with a decline of just 4%.

Looking ahead, analysts caution that the challenging environment may persist. Higher retail prices are causing consumers to delay upgrades, wait for promotional events, or consider refurbished options. These behavioral shifts are expected to place additional strain on demand as the year moves into its final quarter.