According to the latest research from Omdia, the Mainland China smartphone market experienced a 1% year-on-year decline in the first quarter of 2026, with shipments reaching 69.8 million units. This downturn is attributed to rising costs, which prompted price increases for some brands' products. Huawei secured the top position with shipments of 13.9 million units, capturing a 20% market share and continuing its strong momentum. Apple ranked second, shipping 13.1 million units for a 19% market share. OPPO entered the top three with shipments of 11 million units in the first quarter following realme's return. Vivo ranked fourth with shipments of 10.5 million units, while Xiaomi placed fifth with 8.7 million units shipped.
Hayden Hou, Principal Analyst at Omdia, stated, "Due to memory price increases, some brands raised retail prices on certain products in the first quarter to find a relative balance between sales volume, revenue, and brand profitability. This undoubtedly negatively impacted consumer purchasing intent. In contrast, Huawei and Apple did not implement large-scale price hikes and viewed the cost increases as an opportunity to expand their market share. This has made their products relatively more popular with consumers and contributed to their stronger performance in the quarter."
Lucas Zhong, Senior Analyst at Omdia, commented, "Rising costs will put mid-range and entry-level smartphones in a more challenging position. Product series that previously competed on hardware specifications and value-for-money may face more significant price increases this year. On the other hand, innovation in flagship and new foldable models is still expected to sustain overall demand. For instance, advancements like the LOFIC image sensor in the Xiaomi 17 Ultra series, the seamless crease design of the OPPO Find N6, and the large yet slim battery in the Honor Magic V6 will be key themes in this year's product iterations. Additionally, AI agent capabilities will be a major focus for top manufacturers in terms of software deployment. Smartphones remain an ideal platform for AI agents, and for phone makers, breaking through the current competitive landscape still relies on breakthroughs in AI functionality. Brands that can deliver distinctive and more practical AI agent features will be able to achieve a breakthrough in brand image while building a new strategic moat."
Hayden Hou, Principal Analyst at Omdia, added, "In the first quarter of 2026, the combined shipments of Huawei, Apple, Xiaomi, OPPO, Vivo, and Honor accounted for 94% of the total market. These top six brands have established significant advantages in supply chains, R&D capabilities, system services, ecosystem development, and channel construction. However, facing an ever-changing mobile phone market, they must remain cautious and agile. Factors such as fluctuations in memory prices and developments in AI could structurally impact the market landscape. The Mainland China market has already begun a sustained decline influenced by memory price increases. Omdia forecasts that the mainland Chinese smartphone market will remain in a downward trend throughout 2026, with full-year shipments potentially declining by approximately 10%."
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