Apple (AAPL) Stock Jumps After China iPhone Sales Surge 23%

TLDR

• Apple iPhone sales in China jumped 23% in the first nine weeks of 2026
• China’s overall smartphone market fell 4% in the same period
• Apple is not raising prices, instead absorbing margin pressure to gain market share
• Memory chip cost increases are forcing Android rivals like OPPO and vivo to raise prices
• Apple’s strong supply chain is giving it a competitive edge over rivals

Apple’s iPhone sales in China are going the wrong way for its rivals — up, sharply, while the broader market slides. New data from Counterpoint Research shows iPhone sales in China rose 23% in the first nine weeks of 2026. That’s against a wider China smartphone market that dropped 4% year-on-year over the same stretch.

Apple Inc., AAPL

Government subsidies rolled out at the start of the year failed to lift sluggish consumer demand across the board. Apple, however, managed to sidestep that drag.

The gains were fueled by e-commerce discounts and Apple’s eligibility for state subsidies on the base iPhone 17 model. Both factors helped bring more Chinese consumers into Apple’s ecosystem at a time when the competition is struggling.

The root cause of the market stress right now is memory chips. Demand for memory has exploded, largely driven by the hardware needs of AI. That’s pushed up costs across the industry and squeezed margins for phone makers.

Chinese Android brands OPPO and vivo have announced price increases on some of their existing models, effective this month. Counterpoint says those hikes are partly a way to test consumer reaction before new product launches.

Apple Holding Prices While Rivals Flinch

Apple is taking a different approach. The company’s tightly managed supply chain gives it more room to absorb the memory cost hit without passing it on to buyers.

That strategy appears to be working. A 23% sales jump while the market contracts isn’t luck — it’s the result of holding firm on pricing when others couldn’t.

Huawei, meanwhile, is playing its own angle. It leans on domestic chip suppliers, which tend to be cheaper than international memory makers. Counterpoint says that cost buffer could help Huawei push for more share in the low-to-mid-end market.

The memory crunch is expected to persist throughout 2026. Counterpoint sees the Chinese market staying under pressure from March through May, with some temporary relief around the mid-year “618” shopping festival in June.

Apple’s China Revenue Has Been Falling

This sales bounce comes at a useful time for Apple. Its Greater China revenue has been on a downward path for years — from $74.2 billion in fiscal 2022 to $64.4 billion in 2025.

A government ban on iPhone use by Chinese officials in 2023 hurt. So did a surge in competition from Huawei and other domestic brands.

The 23% sales gain in early 2026 doesn’t reverse that trend on its own, but it shows Apple can still move product in the market when conditions line up.

The memory cost pressure is also showing up in Apple’s other product lines. Micron Technology reported second-quarter revenue growth of 196%, a sign of how much demand for memory has surged.

Apple launched the MacBook Neo earlier this month at $599, a low entry-point for a new laptop line — again, while rivals are raising prices.

The latest Counterpoint data covers the first nine weeks of 2026 and was published Thursday, March 19.

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