China's Smartphone Market Shrinks 4.3% in Q2; Huawei, Apple See Growth

China's smartphone market experienced a 4.3% year-on-year decline in shipments during the second quarter of 2026, with approximately 66.01 million units shipped. This marks the fifth consecutive quarter of contraction, according to data from International Data Corporation (IDC).

The market faced headwinds from rising component costs, particularly for memory chips, which led Android manufacturers to increase prices or adjust product configurations. The impact of government subsidies also waned. Consequently, sales during the "618" shopping festival saw a nearly 15% year-on-year decrease.

Despite the overall market downturn, Huawei and Apple emerged as notable performers. Huawei's shipments grew by 19.4% and Apple's by 24.4%, positioning them as leaders in the market.

OPPO maintained its third position, with its average selling price increasing to $395, driven by strong performance in its premium and foldable segments. Its sub-brand OnePlus was the sole Android brand to achieve year-on-year shipment growth.

Vivo focused on steady performance across mid-to-high-end segments, leading the market below $400. Xiaomi dropped to fifth place, strategically reducing low-end production to protect profitability while upgrading its product offerings. Honor solidified its second position in the foldable market.

IDC anticipates the market's decline may widen in the second half of 2026, potentially reaching around 20%. However, the firm forecasts a market recovery in 2028-2029, driven by a new cycle of device upgrades.