Apple's iPhone shipments in China surge 20% in Q1, data shows

iPhone shipments surged 20% in China in the first quarter, ​for the strongest growth among major vendors, despite an overall decline ‌as rising prices of memory chips boosted costs, data from Counterpoint Research showed.

Overall smartphone shipments dropped 4% in the world's largest smartphone market in the period from January ​to March, hit by supply chain disruptions and the soaring chip ​prices.

But telecoms giant Huawei and Apple, the two largest vendors in the market, ⁠bucked the trend, reporting growth of 2% and 20% respectively.

"As most rivals ​raise prices, Apple stands out for value, with Chinese consumers knowing its products ​last at least three years," Ivan Lam, senior analyst at Counterpoint Research.

Huawei's shipments were lifted by strong demand across both its high-end and budget ranges, including the Enjoy 90 ​series, giving it a 20% market share in the quarter, Lam said.

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Huawei ​retained the top spot, followed by Apple with a share of 19%.

Smartphone vendors in China ‌have ⁠raised prices for budget handsets to protect margins in the battle with elevated memory chip costs.

Xiaomi slipped to sixth place with a plunge of 35% in shipments. Lam attributed the sharp decline to a high base effect, after ​Xiaomi benefited from ​aggressive price cuts ⁠and government subsidies in the corresponding period last year.

Shipments by Oppo and Honor also fell 5% and 3% respectively, ​though Vivo saw a rise of 2%, buoyed by ​strong sales ⁠during the Lunar New Year holiday.

Lam expected more headwinds for the market in the second quarter, particularly as Chinese brands look to raise prices further.

"However, we ⁠expect Apple ​and Huawei to fare relatively better, with ​Huawei potentially seeing further shipment growth driven by solid demand for its lower-end devices," Lam said.