China's smartphone market weakened during the 2026 May Day holiday as rising memory costs pushed up handset prices, while Huawei strengthened its lead and Apple Inc. (NASDAQ:AAPL) navigated a more compAetitive upgrade cycle, according to Counterpoint Research.
Rising Component Costs Pressure Smartphone Demand
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Counterpoint Research noted on Tuesday that China's smartphone sales dropped 16% year over year during the two weeks surrounding the May Day holiday, largely because higher memory prices increased smartphone costs and reduced consumer upgrade demand.
The research firm also noted that smartphone makers pulled back on aggressive promotions compared with previous years, prioritizing profitability over sales volume.
