Institution: China Smartphone Shipments Slip 2% YoY in 2Q26, Demand Expected to Face Further Pressure in H2

According to preliminary data from Counterpoint Research's Market Monitor Tracker, China's smartphone shipments fell 2% YoY in Q2 2026, as rising memory costs prompted OEMs to adopt more conservative production plans and prioritize higher-margin models. By brand, Huawei continued to lead China's smartphone market in Q2 2026 with a 23% market share, the brand's highest since Q4 2020. Apple outperformed the broader market in Q2 2026 with shipments growing 23% YoY, with a market share of 18%. The expectation of price increases has prompted some consumers to make early purchases of iPhone. China's smartphone shipments declined 3% YoY in H1 2026. This was largely because OEMs were still drawing on memory inventory procured in late 2025 and Q1 2026, delaying the pass-through of higher memory costs to retail prices. As higher-cost inventory reaches the market in H2 2026, another wave of smartphone price increases is expected to put further pressure on consumer demand and shipments.