03:54 AM EDT, 04/17/2026 (MT Newswires) -- Apple ( AAPL ) recorded a 20% year-over-year increase in smartphone shipments in China during Q1 to become the second-largest seller in the country, Counterpoint Research said Friday.

Overall domestic mobile phone distribution dropped 4% compared with the prior year because of memory hardware deficits, increasing expenses and difficult comparisons against previous government subsidy programs, the report said.

The technology giant's sales jump was propelled by its iPhone 17 lineup, promotional pricing reductions, and state financial support, Counterpoint Research said.

The manufacturer is expected to manage the ongoing memory hardware shortage by absorbing the higher material prices to capture a larger portion of the consumer base, the report said.