Huawei is poised to expand its share of China’s smartphone market as soaring memory chip prices disrupt the industry. A recent analysis by Counterpoint revealed that while overall smartphone sales in China dipped 4% year-on-year during the first nine weeks of 2026-largely due to the Chinese New Year holiday-local brands like Huawei are leveraging the fallout from escalating DRAM and NAND flash costs to position themselves ahead of rivals.
The report highlights a sharp increase in memory chip prices starting in 2026, which has strained the supply chain and pushed smartphone manufacturers to raise device prices and limit discounts. In contrast to competitors Oppo and Vivo, who have already announced price hikes on certain models, Huawei is taking a more measured approach. This caution is compensated for by the company’s strong reliance on domestic suppliers, who typically offer more competitive pricing compared to international vendors.
Counterpoint’s analysis suggests that Huawei is likely to capitalize on cost advantages in the low- and mid-tier smartphone segments, leveraging local supply chains to broaden its market footprint. This approach comes as other brands grapple with increased production costs, squeezing margins and curbing the aggressive discounting that often drives volume sales during peak seasons.
Such dynamics underscore a shifting economic environment for smartphone makers in China. Huawei’s nimble supply chain strategy could not only soften the blow of memory price inflation but also help the company fortify its market position as overall demand faces headwinds. With subsidies and promotional campaigns losing potency amid rising costs, Huawei’s steadier pricing tactics may attract price-conscious consumers looking for value without compromising features.
Given the ongoing memory shortage, this period could mark a rare opportunity for Huawei to chip away at rivals’ shares, especially Oppo and Vivo, who risk alienating budget buyers through abrupt price surges. How well Huawei manages to sustain this advantage will be key as the smartphone market recalibrates after recent disruptions.