BEIJING, China: Apple recorded strong growth in China's smartphone market at the start of 2026, even as overall sales declined, helped by discounts and pricing stability amid rising component costs.

The iPhone maker's sales in China rose 23 percent in the first nine weeks of the year, according to data from research firm Counterpoint, contrasting with a four percent drop in the broader market during the same period.

Weak consumer demand has persisted despite government subsidies introduced earlier this year, and the incentives have done little to revive the market.

Apple's performance was supported by e-commerce promotions and its inclusion in state subsidy programmes for the base iPhone 17 model. Analysts also pointed to the company's supply chain strength, which has allowed it to absorb higher memory chip costs rather than pass them on to consumers.

"Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share," Counterpoint said.

In contrast, several Chinese Android manufacturers have started raising prices. OPPO and vivo announced increases for some existing models this month, partly to test consumer response ahead of new product launches.

Huawei, meanwhile, may benefit from its reliance on domestic suppliers, which tend to be cheaper than international memory chipmakers. This could give it an advantage in the lower- and mid-range segments, Counterpoint said.

The research firm expects China's smartphone market to remain under pressure in the coming months, with potential improvement in June during the annual "618" shopping festival, when promotional activity typically picks up.

Rising memory costs are expected to persist through 2026, forcing manufacturers to balance pricing, margins, and shipment targets.