BEIJING, China: Apple recorded a sharp rise in iPhone shipments in China in the first quarter, outperforming rivals even as the broader smartphone market contracted amid rising component costs and supply disruptions.

Shipments of iPhones rose 20 percent year-on-year in the January–March period, marking the fastest growth among major vendors, according to data from Counterpoint Research. The overall market, however, declined by four percent during the same period.

The downturn in total shipments was driven by higher memory chip prices and ongoing supply chain disruptions, which have pushed up production costs across the industry.

Despite the broader slowdown, Apple and telecoms giant Huawei, the two largest smartphone vendors in China, both reported growth. Huawei's shipments increased by two percent, while Apple posted a significantly stronger gain.

"As most rivals raise prices, Apple stands out for value, with Chinese consumers knowing its products last at least three years," said Ivan Lam, senior analyst at Counterpoint Research.

Huawei retained its position as the market leader with a 20 percent share, supported by strong demand across both premium and budget segments. Its performance was driven in part by the popularity of models such as the Enjoy 90 series.

Apple followed closely with a 19 percent market share, underscoring its continued strength in the premium segment despite increasing competition from domestic brands.

Other smartphone makers struggled to maintain momentum. Xiaomi slipped to sixth place after shipments fell 35 percent, a drop analysts attributed to a high base effect following aggressive pricing and government subsidies in the same period last year.

Shipments from Oppo and Honor also declined, falling five percent and three percent respectively, while Vivo posted modest growth of two percent, supported by seasonal demand during the Lunar New Year holiday.

Across the sector, vendors have been raising prices, particularly for budget devices, to offset rising memory chip costs and protect profit margins.

Analysts expect the challenges to persist into the second quarter, with further price increases likely as companies navigate cost pressures and uncertain demand.

"However, we expect Apple and Huawei to fare relatively better, with Huawei potentially seeing further shipment growth driven by solid demand for its lower-end devices," Lam said.