China’s smartphone market saw a sharp slowdown in January 2026, with total sales falling 23% year-on-year, according to Counterpoint Research. Domestic brands broadly posted double-digit declines. Xiaomi suffered the steepest drop, down 36%, falling to fifth in market share. Huawei, the market leader, declined 27%, while Vivo fell 29%, Honor dropped 26%, and Oppo decreased 19%.

The downturn was largely attributed to a high base effect from government subsidies in early 2025, combined with reduced incentives and weaker consumer demand in 2026. Apple was the only major brand to post growth, with sales rising 8% year-on-year and market share reaching its highest January level in nearly five years. The iPhone 17 series continued to perform strongly, with the standard model benefiting from subsidy eligibility and recording a 9% month-on-month sales increase.

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