A recent report by Counterpoint Research sheds light on significant developments in the smartphone market, which has been in a prolonged period of decline. Despite the difficulties, Apple and Huawei managed to stand out, recording double-digit increases in sales of iPhone and Huawei models, year-on-year. This trend contrasts with the overall market decline, which recorded an 8% decline for the period between May 11 and 17, 2026.
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iPhone sales increased 10% year-on-year, demonstrating Apple’s continued momentum in the market despite the challenges facing the industry. Huawei, on the other hand, managed to increase its sales by 23%, making it the second exception in the market. These increases are particularly notable given that other leading vendors, such as Samsung, Oppo, Xiaomi and Vivo, recorded declines in their sales, with Vivo recording the largest decline at 19%.
Counterpoint Research notes that even promotional efforts in major markets such as China and India have failed to revive demand. Recent price hikes, product launch adjustments and aggressive cost optimization tactics by manufacturers due to widespread memory shortages have weighed on the market. Tarun Pathak, Research Director at Counterpoint, says that memory prices are expected to remain high for the rest of 2026, forcing manufacturers to adjust their strategies.
This includes price increases, adjustments to product releases, and aggressive cost optimization tactics, such as reducing features on devices and more efficient channel management.
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The difference in supply chain stability and pricing capabilities seems to be the main reason for the gap between Apple and Huawei and the rest of the companies. Apple, with its strong supply chain and pricing strategies, manages to maintain its competitiveness, even in times of crisis. Huawei, despite the geopolitical pressures and restrictions it faces, continues to grow, capitalizing on the local Chinese market and the growing demand for its devices.
Interestingly, Counterpoint's report comes at a time when Apple CEO Tim Cook has confirmed that price hikes are inevitable due to the RAM shortage. While Cook did not clarify whether these increases will affect current devices or whether they will be applied to new products, his statement highlights the challenges facing the industry.
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This situation raises concerns about the future of the smartphone market, as consumers may face increased prices and limited choices. Manufacturers must find ways to remain competitive, while consumers should be prepared for possible changes in device prices and features. The smartphone market is at a critical crossroads, where companies’ strategic decisions will determine its course for the coming years.
