China’s smartphone market shrank again in the second quarter of 2026, extending a difficult run for the industry. Shipments were about 66 million units in the period, down 4.3% from a year earlier and marking the fifth consecutive quarter of decline.
Even with the broader market under pressure, Huawei and Apple stood out by growing during the quarter. Their expansion suggests both companies captured share while overall demand weakened, highlighting a sharp split between the strongest brands and the rest of the market.
One of the main pressures facing the sector was higher memory and component costs. Rising input prices can squeeze vendors and make it harder to drive volume in a market that is already slowing, adding another challenge for smartphone makers operating in China.
The result was a quarter in which total shipments fell, but leading players still managed to advance. Huawei and Apple’s gains underline how market share can shift even during a downturn, especially when the overall smartphone market continues to contract.
