Huawei maintains lead in China’s smartphone market amid swirling cost pressures and shifting demand

Huawei continues to dominate China’s smartphone market in early 2026 despite an overall sales decline of 8.6%, driven by disciplined pricing and demand for its latest devices, even as rivals face rising costs and market softness.

Huawei has retained the number one position in China’s smartphone market in the first 30 weeks of 2026, even as the sector continued to weaken under the strain of higher component costs and tight memory supply, according to a Counterpoint report cited by Huawei Central. The research said overall sales fell 8.6% year on year, with the market turning softer after the 618 shopping festival and moving back into a seasonally weaker phase.

Counterpoint’s figures suggest Huawei has held a weekly market share above 20% since the second quarter, supported by what it describes as a more disciplined pricing approach and a pipeline of devices that continue to attract demand. Huawei Central said the Enjoy 90 Pro Max was one of the main drivers of that result. The report also pointed to pressure across the wider Android market, where rising costs have complicated sales tactics for rivals.

That cost pressure has started to reshape pricing plans. Huawei is expected to raise prices in the second half of 2026, while Xiaomi is also reported to be increasing prices by between 300 yuan and 500 yuan per model. Counterpoint said Xiaomi took second place in week 30 sales, helped by the Redmi Note 17 series, though it warned that the brand could lose ground later in the year if higher prices dent demand.

Honor, meanwhile, has seen a sales recovery after the launch of the X80 Pro Max and is revising its launch strategy to improve traction. Apple has slipped to fifth place in the weekly rankings after previously holding second, although the report said demand for iPhones remains relatively stable until the next product cycle begins. The broader picture is consistent with other recent market snapshots: Huawei and Apple were the leading brands in China in the second quarter of 2026, while analysts have linked the market slowdown to memory shortages, rising parts costs and stronger demand for premium handsets.

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