Korean Media: Huawei Leads China's Smartphone Market, Apple Surges 42%!
On May 22, South Korean media outlet News1 published an article stating that due to the sharp rise in DRAM prices, the gap in shipment volumes among smartphone manufacturers in China has significantly widened. Analysis indicates that increased component costs directly impacted product pricing and shipping strategies, leading to a shift in market dynamics.
Data released by market research firm Omdia shows that China’s smartphone shipments declined by 1% year-on-year to 69.8 million units in the first quarter of 2026.
By manufacturer, Huawei ranked first with a 20% market share, shipping 13.9 million units. Apple came in second with 13.1 million units, holding a 19% market share, while Xiaomi placed third with 8.7 million units. OPPO and Vivo followed in fourth and fifth positions with 11 million and 10.5 million units respectively.
The changes in shipments for Apple and Xiaomi were particularly notable. Apple’s shipments increased by 42% compared to the same period last year, whereas Xiaomi’s dropped by 35%. Given the slight overall decline in the market during the same period, this actually reflects an expanding gap between the two companies.
Omdia pointed out that one factor contributing to the market downturn was price increases of 10% to 30% on certain models by major smartphone manufacturers in the first quarter. The explanation is that rising component costs were reflected in consumer prices, thereby affecting demand. In contrast, Huawei and Apple managed to expand their market shares despite relatively moderate price hikes.
The surge in memory prices is considered the primary cause behind these shifts. According to TrendForce, a market research firm, the contract price for general-purpose DRAM rose by approximately 90% to 95% in the first quarter of 2026 compared to the previous quarter, while the price for low-power DRAM specifically designed for mobile devices also increased by nearly 90%.
Rising component prices have also triggered strategic adjustments in product offerings. Some manufacturers, while raising prices, adjusted product specifications to alleviate cost pressures, while others reduced DRAM capacity—especially in entry-level models.
In addition, Omdia noted that increasing market concentration is one of the key characteristics, with the combined market share of the top six smartphone manufacturers reaching 94%. This suggests that major players are strengthening their dominant positions through superior supply chain management and product competitiveness.
Meanwhile, Omdia forecasts that China’s smartphone market could shrink by as much as 10% in 2026, driven by volatile memory prices and intensifying competition in AI capabilities.
Original source: toutiao.com/article/1865880903007242/
Disclaimer: The views expressed in this article are solely those of the author.