# China smartphone shipments decline for fifth consecutive quarter Memory costs pressure manufacturers as Huawei and Apple stand out - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-07-14 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/56d01756-d569-4882-9557-a1e8dacf3e9a ## China smartphone shipments decline for fifth consecutive quarter Smartphone shipments in China fell for the fifth consecutive quarter. According to IDC data, shipments dropped 4.3% to 66 million units in Q2 2023. The primary reason for this decline was manufacturers raising prices to cover increasing memory and component costs. ## Huawei and Apple gain while others lose Huawei and Apple were the only companies to increase their market share. Huawei's shipments rose by 19.4%, while Apple's grew by 24.4%. All other manufacturers saw declines: Xiaomi fell by 21.7%, Oppo by 9.7%, and Vivo by 11.4%. Pricing strategy was the key factor in their success. ## Memory costs squeeze manufacturers The surge in DRAM prices is driven by memory manufacturers shifting capacity to high-bandwidth parts for AI accelerators, leaving less capacity for the phone industry. This has particularly impacted budget-friendly devices. ## Android manufacturers raise prices Most Android manufacturers responded to cost increases by raising prices or reducing their budget-friendly models. This led price-sensitive consumers to hold onto their current devices rather than upgrading. ## Global smartphone market expected to shrink IDC predicts global smartphone shipments will decline by 13.9% to 1.09 billion units by 2026. This would be the sharpest annual contraction the industry has ever recorded. In China, the annual decline is expected to be around 13%. ## Price stability drives success Huawei and Apple maintained stable prices, allowing them to grow their market share. This strategy gave consumers confidence amid competitors' price hikes. Q3 figures will reveal whether this was a sustainable strategy or a temporary moment. ## Sources covering this story - https://thenextweb.com/news/china-smartphone-shipments-fifth-quarterly-fall-memory-costs — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._