Apple Inc. (AAPL) has reclaimed the top spot in China’s smartphone market after iPhone shipments surged 28% during the key holiday quarter, according to Counterpoint Research. The rebound came even as the wider market slipped, showing that demand for premium phones remains strong.
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Counterpoint said Apple’s latest iPhones accounted for about one in five smartphones shipped in China during the December quarter. The gains came largely at the expense of Huawei Technologies and Xiaomi, both of which saw double-digit declines. Overall smartphone shipments in China fell 1.6%, making Apple’s performance stand out.
High-End Phones Hold Firm despite Chip Shortage
Apple’s gains came at a time when the industry is dealing with a shortage of memory chips. Many tech firms have warned that tight supply and rising prices could hit phone makers, especially at the low end. The issue has grown as chipmakers focus more on advanced memory used in AI systems for companies like Nvidia (NVDA).
Counterpoint said premium phones have been less affected by the shortage. Looking ahead, the firm expects memory prices to rise further in early 2026, which could push phone makers to cut back on low-end models to protect margins. This trend continues to favor brands like Apple that focus on high-end devices.
Where Apple Stands Now in China’s Premium Market
For the full year, Apple finished just behind Huawei in China, with both holding about 17% market share. Apple’s shipments rose 7.5% in 2025, helped by steady demand for its main iPhone models. However, the iPhone Air was a weak spot, as its late launch in China failed to gain much interest.
Even so, the strong holiday-quarter performance shows Apple’s brand remains resilient in China, despite ongoing pressure across the wider smartphone market.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 19 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $299.69 per share implies 17.28% upside potential.
