Apple’s Resilience Amid Rising Memory Chip Costs
Published: Thu, Mar 19, 2026 · 10:43 AM
[BEIJING] In a striking contrast to the prevailing market trends, Apple has reported a remarkable 23 percent increase in smartphone sales in China during the first nine weeks of 2026.
This surge defies an overall market decline, as certain Android manufacturers have opted to elevate their prices to accommodate the escalating costs of memory chips.
During the January to early March timeframe, China’s smartphone market contracted by 4 percent year-on-year. Data released on Thursday (Mar 19) by research firm Counterpoint highlights the inefficacy of newly implemented government subsidies in stimulating sluggish consumer demand.
Apple’s sales growth can be attributed primarily to competitive e-commerce discounts and its eligibility for state subsidies on the basic iPhone 17 model.
The tech giant’s meticulous control over its supply chain positions it advantageously compared to its competitors, enabling it to better absorb the financial ramifications of spiking memory chip prices.
Reports suggest that the company is likely to maintain its pricing strategy while rivals are compelled to increase theirs.
“Apple is positioned to absorb some margin pressures, essentially utilizing the situation to broaden its market share,” noted Counterpoint.
In response to the rising costs of memory chips, renowned Chinese Android brands OPPO and vivo have disclosed intentions to raise the prices of certain existing models.
This strategic move is seen as a means to assess consumer reactions ahead of forthcoming product launches, thereby shaping pricing structures for next-generation devices.
Anticipated Market Trends
Huawei may capitalize on its dependency on domestic suppliers, whose pricing practices tend to be more favorable compared to international memory chip manufacturers.
This position may grant Huawei a strategic advantage in mitigating the impact of soaring memory costs, particularly in the low-to-mid-end market segment.
Counterpoint anticipates sustained pressure on the Chinese smartphone market from March to May, with a potential reprieve in early June coinciding with the mid-year “618” shopping festival, which typically triggers a surge in promotional activities.
The overarching memory cost crisis is predicted to persist through 2026. This scenario will likely induce handset manufacturers into arduous trade-offs between cost management, margin protection, and achieving shipment targets.
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