Huawei retains lead in China smartphones, Apple shipments surge in first quarter

Market snapshot

Huawei Technologies (华为) reclaimed the top spot in China’s smartphone market in Q1, capturing a 20% share — its highest quarterly share since late 2020, according to a Counterpoint Research report. Apple placed second with a 19% share after shipments jumped about 20%, the largest growth among the top six brands. It has been reported that Chinese government subsidies offering a 15% discount on devices under 6,000 yuan (roughly US$880), plus heavy holiday promotions during Chinese New Year, helped lift sales.

Why Huawei is winning

Huawei’s recovery is closely tied to its supply-chain pivot. After years of US export controls that disrupted its access to some advanced components, Huawei leaned into domestic suppliers and localised parts sourcing — a move that reportedly provided a cost buffer as global memory prices spiked. Counterpoint credited that supplier mix and aggressive local promotions for the company’s rebound.

Apple’s surge and supply resilience

Apple’s performance underlines a different playbook: premium pricing, the strong-selling iPhone 17 series, targeted promotional cuts and the same subsidies that boosted the broader market. It has been reported that Apple may be best positioned to absorb higher component costs because of its product mix and global supply-chain muscle, enabling it to expand share even amid a global memory-chip crunch and ongoing trade tensions between the US and China.

What it means going forward

This quarter crystallises a broader trend: state support and supplier localisation are reshaping competition in China’s largest smartphone market, while foreign majors like Apple rely on brand strength and logistical scale to fight back. Can Huawei sustain this momentum? The answer will hinge on memory prices, continued domestic policy support and how geopolitical trade measures evolve.