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The Chinese smartphone market contracted significantly more in the summer than in the first half of the year. Apple is also shipping fewer units than a year ago, but its losses are considerably smaller than the market average. Market research firm IDC attributes the decline to a decision made by Apple itself.
According to preliminary figures from IDC, approximately 57.9 million smartphones were shipped in China in the third quarter of 2026, 15.4 percent fewer than in the same period last year. In the first half of the year, the decline had been around 4 percent. IDC attributes this to the sharply increased prices for memory and other components, which are leading manufacturers to higher sales prices and reduced features.
All articles about Apple's business there are compiled on the page about China.
Key Facts at a Glance
- China's smartphone market shrank by 15.4 percent in the third quarter to around 57.9 million devices.
- According to IDC, Apple is shipping slightly fewer units than last year because there are fewer new models this year.
- According to IDC, the new iPhones were better received than expected.
- Huawei is the only major manufacturer to achieve double-digit growth, reaching a market share of 21.1 percent.
- IDC expects high component costs to weigh on the market well into 2027.
Fewer devices at higher prices
IDC describes the situation as a market where unit sales are falling and prices are rising. This is hitting Android manufacturers and smaller brands, which are more heavily represented in the price-sensitive segment, particularly hard. IDC cites Huawei as the only major manufacturer with double-digit growth compared to the previous year, noting that Huawei raised prices relatively moderately and offers a broad product range.
According to IDC, Honor is the only major manufacturer that managed to increase sales compared to the previous quarter. The other major Chinese brands are under significant pressure, according to the market research firm.
Apple: good demand, fewer models
IDC reports that Apple's new iPhones were better received than expected. Shipments still declined slightly, however, because there were fewer models this year. Apple only unveiled the Pro models in the fall; the regular iPhone 18 won't follow until spring 2027.
Counterpoint cited the same reason for the global market. There, shipments fell by 20 percent in the third quarter, while Apple's market share rose to 22 percent. According to Counterpoint's figures, Apple even held first place in China during the iPhone 18 Pro's launch week, with a 33 percent weekly share.
From growth to losses
The situation for Apple in China looked different in the second quarter. At that time, IDC reported a 24.4 percent increase in iPhone shipments, while the overall market shrank by only 4.3 percent.
| Q2 2026 | Q3 2026 | |
|---|---|---|
| Total market China | approximately 66 million devices | approximately 57.9 million devices |
| Change year over year | -4.3 % | -15.4 % |
| Apple compared to the previous year | +24,4 % | slight decrease |
| Huawei | 22.6 % market share | 21.1 % market share |
One reason IDC cited for the increase in the spring was that buyers had opted for the iPhone 17 before announced price hikes. At that time, IDC had projected a decline of around 20 percent for the overall market in the second half of the year. The third quarter, at 15.4 percent, was lower, and IDC does not expect any noticeable improvement in the fourth quarter despite the introduction of many new devices.
Why the market slump is affecting Apple less
I consider these figures further proof that the storage crisis is primarily affecting the lower price segment. Counterpoint had already described the price-sensitive segment as the hardest hit, and Xiaomi, OPPO, and vivo are particularly strong there. The fact that Apple is only experiencing a slight decline despite lacking a base model suggests strong demand for its Pro models.
Higher iPhone prices are also a reality in Germany. The iPhone 18 Pro costs €150 more than its predecessor, and the iPhone 17 also became €150 more expensive in September. If component costs remain high, as predicted by IDC, well into 2027, I expect the regular iPhone 18 to launch this spring at a higher price than the iPhone 17 once did.
Given the current prices, would you rather go for the Pro or wait for the regular iPhone 18 in the spring? Let us know your reasoning in the comments.
