Apple reclaims its position as the number one smartphone brand in China, with iPhone shipments soaring 28% despite chip shortages.

Apple reclaims its position as the number one smartphone manufacturer in China, with iPhone shipments soaring 28%. However, a shortage of memory chips continues to pressure other manufacturers and drive up costs.

On January 19, 2569, at 13.00:4 PM, Bloomberg News reported that Apple Inc. has regained its position as the market leader in smartphones in China, after iPhone shipments increased by 28% in the fourth quarter, despite facing an increasingly severe shortage of memory chips, according to data from Counterpoint Research.

Counterpoint reports that the iPhone 17 series received significant consumer interest, resulting in Apple smartphones accounting for one-fifth of all shipments during the quarter. This growth came at the expense of competitors like Huawei Technologies Co. and Xiaomi Corp., both of which saw double-digit declines in shipments, while overall smartphone shipments in China, the world's largest market, fell 1.6%.

From Micron Technology Inc. to Xiaomi, several companies have begun warning of the uncertain impact of shortages of memory chips used for data storage in electronic devices. This problem arises after memory chip manufacturers shifted their production capacity to high-end memory for Nvidia Corp.'s AI chips, driving up memory prices and putting pressure on smaller players who cannot secure long-term supply contracts.

Counterpoint analysts predict that memory prices will rise by another 40–50% in Q1 2569 and by approximately 20% in Q2 2569, as smartphone manufacturers (OEMs) are likely to adjust their product portfolios, reducing the proportion of low-priced models to maintain profit margins.

C.C. Wei, CEO of Taiwan Semiconductor Manufacturing Co., pointed out that the impact of the chip shortage did not affect all sectors equally. High-end smartphones were less affected, while Apple, which targets almost all of the high-end market, demonstrated the greatest resilience. Furthermore, China's new round of consumer subsidies helped alleviate some of the cost burden for manufacturers.

Considering the entire year, Apple's shipments lagged only slightly behind Huawei, with the two holding roughly the same market share of 17%. Apple's shipments are projected to increase by 7.5% in 2568. However, one weakness is the iPhone Air, which was launched later in China than in other markets and did not gain as much popularity as expected.

Counterpoint analyst Evan Lam stated that "the iPhone Air underperformed," pointing out that the delayed launch and the compromise on features for a slimmer design resulted in weak initial sales.

Reference: bloomberg.com

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