China smartphone market declines for fifth straight quarter as rising component costs bite

Details: Manny Pham; Category: Devices & Platforms; 16 July 2026; 1388 views

China’s smartphone market fell 4.3% year-on-year to 66 million shipments in the second quarter of 2026, marking a fifth consecutive quarter of decline as rising memory and component costs pushed up device prices, according to IDC.

The research firm said component prices began climbing in late March, while government subsidies that had supported demand in previous quarters started to fade. The combination weakened consumer demand and forced most Android smartphone vendors to raise prices.

Huawei and Apple were the notable exceptions, keeping market broadly stable during the quarter. IDC suggested this helped both vendors attract consumers who were hesitant to buy amid rising prices elsewhere in the market.

Huawei regained the top spot with a 22.6% market share after shipments climbed 19.4% year-on-year. Apple followed with an 18.1% share, posting 24.4% growth. Oppo and Vivo tied for third place with 16% market share despite recording shipment declines, while Xiaomi ranked fifth with 12.4%. Samsung finished 10th with just 0.1% market share after shipments plunged 60% - the steepest decline among the top 10 vendors.

First-half smartphone shipments totalled around 134 million units, down 4.2% compared to the same period last year.

“Huawei and Apple held their prices steady while competitors were raising theirs, and that gave hesitant buyers a reason to go ahead and purchase in a quarter when most of the market was giving them a reason to wait,” said Arthur Guo, Research Analyst, Client Devices Research at IDC China.

Looking ahead, IDC warned that pricing pressures are expected to intensify. Vendors have so far been cushioned by inventories of lower-cost components purchased before prices increased, but those stockpiles are being depleted. As a result, the research firm expects the year-on-year market decline to widen to around 20% in the second half of 2026.

IDC also expects 2027 to remain challenging as storage prices are unlikely to ease significantly. However, it noted that consumer demand has been delayed rather than destroyed, with a new smartphone replacement cycle expected to drive a market recovery between 2028 and 2029.