BEIJING, April 17 (Reuters) - Apple's ( AAPL ) iPhone

shipments surged 20% in China in the first quarter, for the

strongest growth among major vendors, despite an overall decline

as rising prices of memory chips boosted costs, data from

Counterpoint Research showed.

Overall smartphone shipments dropped 4% in the world's

largest smartphone market in the period from January to March,

hit by supply chain disruptions and the soaring chip prices.

But China's two largest smartphone vendors, telecoms giant

Huawei and Apple ( AAPL ), bucked the trend, reporting growth of 2% and

20% respectively.

"As most rivals raise prices, Apple ( AAPL ) stands out for value,

with Chinese consumers knowing its products last at least three

years," Ivan Lam, senior analyst at Counterpoint Research.

Huawei's shipments were lifted by strong demand across both

its high-end and budget ranges, including the Enjoy 90 series,

giving it a 20% market share in the quarter, Lam said.

Huawei retained the top spot, followed by Apple ( AAPL ) with a share

of 19%.

Smartphone vendors in China have raised prices for budget

handsets to protect margins in the battle with elevated memory

chip costs.

Xiaomi ( XIACF ) slipped to sixth place with a plunge of 35%

in shipments. Lam attributed the sharp decline to a high base

effect, after Xiaomi ( XIACF ) benefited from aggressive price cuts and

government subsidies in the corresponding period last year.

Shipments by Oppo and Honor also fell 5% and 3%

respectively, though Vivo saw a rise of 2%, buoyed by strong

sales during the Lunar New Year holiday.

Lam expected more headwinds for the market in the second

quarter, particularly as Chinese brands look to raise prices

further.

"However, we expect Apple ( AAPL ) and Huawei to fare relatively

better, with Huawei potentially seeing further shipment growth

driven by solid demand for its lower-end devices," Lam said.