China smartphone market and industry, 2Q 2026

According to DIGITIMES’ review and analysis, memory contract prices for smartphones rose sharply by 50-80% quarter-over-quarter in both quarters of the first half of 2026, forcing China-based mobile phone makers not only to slash shipments of low- and mid-range models, but also leaving them unable to offer sufficiently attractive discounts during the 618-shopping festival. As a result, total shipments by Chinese smartphone vendors in the second quarter fell to 130.5 million units, down 13.3% from the prior quarter and 25.5% from a year earlier; smartphone shipments in the China market reached 63.6 million units in the second quarter of 2026, down 10.7% sequentially and 11.7% year-over-year.

The top seven China-based smartphone brands by shipment in the second quarter of 2026 were, in order, Xiaomi, Oppo, Vivo, Transsion, Huawei, Honor and Lenovo. Looking at overseas shipments by China-based smartphone makers in the second quarter of 2026, overseas demand had yet to recover, while surging memory prices pushed smartphone production costs even higher. This prompted Chinese vendors to raise prices and reduce shipments of low- and mid-range models in emerging overseas markets, driving overall overseas shipments of China-based smartphone makers down 31.3% year-over-year. The top six China-based vendors in overseas smartphone shipments in the second quarter of 2026 were, in order, Xiaomi, Oppo, Transsion, Lenovo, Vivo and Honor.

This report gives a clear read on where the China smartphone industry is headed as memory cost pressure reshapes vendor strategy through the rest of 2026, from shipment cuts to pricing decisions across both domestic and export channels. With detailed vendor-by-vendor breakdowns and forward guidance, it equips decision-makers to benchmark competitor positioning and anticipate market shifts ahead of the year-end shopping season.