Technology giant Apple Inc (NASDAQ:AAPL) set several records in the fourth quarter and first quarter with the latest iPhone cycle showing strong growth in the United States and globally. A comeback in China in recent months could face pressure as overall smartphone sales decline in the region.

China Smartphone Sales Drop

Apple became the global smartphone leader in 2025, retaking the title back for the first time since 2011. Helping matters was strong demand in China.

A new report shows that China could be seeing smartphone demand drop to start 2026, a worry for smartphone companies worldwide.

Data from the China Academy of Information and Communication Technology, as shared by 9to5Mac, said Chinese smartphone shipments were down 12.6% year-over-year in February. The report showed a total of 16.3 million smartphones shipped.

Of the 16.3 million total, 14.4 million were from domestic smartphone companies in China, with their sales down 15.7% year-over-year.

This large drop for the domestic companies likely means that the other carriers, like Apple, saw gains in shipments for the month of February.

This data comes after Counterpoint Research recently showed strong sales for Apple in China for the month of January, with smartphone sales up 8% year-over-year.

In January, Apple was among the few year-over-year gainers, according to Counterpoint Research data.

Apple was tied for first place for market share in January at 19% with Huawei. Here were the year-over-year changes for January:

  • Apple: +8%
  • Huawei: -27%
  • Oppo: -19%
  • Vivo: -29%
  • Mi: -36%
  • Honor: -26%

Taken together, the two data reports suggest Apple likely saw year-over-year gains in both January and February in China, while the other big players in the market were down. This means Apple likely gained market share.

Apple's market share could see further gains in March, with the iPhone 17e launching in China on March 11.

Apple Dominating Smartphones

In 2025, Apple led the way with a 20% global smartphone market share, outpacing Samsung’s 19%. Apple saw 10% year-over-year growth, outpacing the other top global smartphone companies for 2025.

A Counterpoint Research report said global smartphone sales could fall 2.1% year-over-year in 2026.

The report suggested that Chinese smartphone companies could be hit the hardest, but Apple may not be immune to the overall market declines.

Apple is expected to end 2026 with 19% market share, tied with Samsung. Apple is expected to have overall year-over-year declines of 2.2% smartphone units, according to the report.

Investors will be paying close attention to future Apple quarterly results to hear commentary on regional strength for the iPhone and the overall demand for different models.

Based on early 2026 data, Apple could end up better than originally expected in the smartphone market.

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