The world’s largest PC maker said fourth-quarter revenue rose 27% to $21.6 billion for the period ended March, beating analysts’ expectations of $18.7 billion. Profit attributable to shareholders climbed 479% to $521 million, above forecasts of $271 million.

Its shares jumped 15% on Friday, making it the biggest gainer on Hong Kong’s Hang Seng Index.

Lenovo’s biggest business unit, which covers PCs, tablets and smartphones, recorded a 24% increase in revenue. The company said it was the division’s strongest quarterly growth in five years.

The results came as PC makers are currently dealing with high memory prices and supply shortages. Lenovo had earlier warned that the shortage could affect shipments across the industry. The company has also raised prices on some PCs to manage higher component costs.

“Supply (of memory chips) is in heavy shortage, and the cost is growing faster,” Lenovo Chief Executive Officer Yang Yuanqing told Reuters on Friday.

He added that Lenovo’s wider supplier network, including Chinese memory chip producers, helped reduce pressure on the business.

Chinese memory chipmaker ChangXin Memory Technologies recently identified Lenovo as one of its major customers in a prospectus filing. The chipmaker also reported more than 700% growth in first-quarter revenue as memory prices surged.

According to forecasts, memory chip prices doubled in the first quarter and could rise by as much as 63% this quarter. Demand from data centres has tightened supply for laptops, smartphones and cars.

Lenovo said its PC shipment growth outpaced the market by nearly six percentage points during the quarter. Research firm Counterpoint Research said global PC shipments rose 3.2% in the first quarter to 63.3 million units, while Lenovo’s shipments increased 9% to 16.5 million units. That gave the company a 26% share of the global market.

The company is also expanding its server business. Lenovo said its infrastructure solutions group, which includes its server operations, posted 37% revenue growth in the quarter, the fastest among all its business units.

It added that its server order pipeline had reached $21 billion as demand for data centre equipment continued to grow.

New figures from Counterpoint Research showed Apple’s shipments grew 20% year-on-year between January and March. That was the strongest performance among the country’s major phone makers.

The overall Chinese smartphone market, however, fell 4% during the same period. High memory chip prices and supply chain pressure weighed on sales across the sector.

Huawei kept its lead in the market with a 20% share after posting 2% shipment growth. Apple followed closely with 19%.

Counterpoint senior analyst Ivan Lam said Apple stood out while rivals raised prices.

“As most rivals raise prices, Apple stands out for value, with Chinese consumers knowing its products last at least three years,” he said.

That view appears to be helping Apple hold demand in a market where buyers have become more careful with spending.

Huawei also benefited from strong demand across both premium and lower-priced devices. Lam said sales of models such as the Enjoy 90 series helped lift its numbers.

Several other brands lost ground.

Xiaomi’s shipments dropped 35%, pushing it down to sixth place. Lam linked the fall to a strong performance in the same period last year, when the company benefited from aggressive discounts and government subsidies.

Oppo and Honor also posted declines of 5% and 3% respectively.

Vivo was one of the few brands to grow, recording a 2% rise, helped by strong Lunar New Year sales.

With these, Counterpoint expects more pressure in the second quarter as Chinese brands keep raising prices.

Lam said Apple and Huawei may cope better than others, with Huawei likely to gain further support from demand for cheaper handsets.

New data from Counterpoint Research shows that demand is still weak across China. Government subsidies introduced in January have not done much to change that, making individuals hold back on spending, and phone makers are feeling it.

Apple, however, managed to push ahead, discounts on e-commerce platforms helped, and the base model of the iPhone 17 qualified for state subsidies. That combination made its devices more attractive at a time when buyers are prudent.

There is also the question of cost, with memory chip prices surging and putting pressure on manufacturers.

While others are reacting by raising prices, Apple is taking a different route. Its control over its supply chain gives it room to absorb some of the extra cost instead of passing it on to customers.

Counterpoint explained, “Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share.”

Competitors are not in the same position. OPPO and vivo have already increased prices on some existing models this month. The adjustments are not just covering costs, but are also testing how much consumers are willing to pay before new devices arrive later in the year.

Meanwhile, Huawei is leaning on domestic suppliers who tend to charge less than international chipmakers, giving Huawei some breathing space.

That advantage could help it compete more aggressively, especially in the low- and mid-range segments.

The pressure is not going away soon. Memory costs are still high, and manufacturers are being forced to choose between protecting margins, keeping prices stable, or pushing shipments.

Hence, the Chinese market is expected to stay soft through March, April and May. There may be some lift in early June when the country’s “618” shopping festival begins.

That period usually brings heavy discounts and a spike in sales, although any rebound may be temporary.

As it stands, most brands are adjusting to a tougher market, while Apple is using the moment to hold its ground in the China smartphone market, and possibly take more share, while sales grow.

This was revealed in a new report from Counterpoint Research, as Apple led international brands with a 21% increase, while HONOR recorded an 83% peak, supported by strong inventory and early-year growth.

This shows that Chinese manufacturers still led the MEA market, with Samsung and Transsion holding large market shares through high volume shipments and strategic stock management.

The growth in Q4 was strongest at both the entry and premium ends of the market, with devices priced between $100 and $249 rising 28% year-on-year. This was driven by feature phone migration in Africa.

Phones above $700 jumped 46%, helped by consumer financing and trade-in programmes. High 5G adoption also contributed, with shipments of 5G devices surging 22% as operators expanded coverage in emerging markets.

Samsung posted 53% year-on-year growth, maintaining volume leadership over Transsion by front-loading lower-cost inventory ahead of rising market prices.

Xiaomi and Transsion saw declines of 14% and 4% respectively, as expensive components and global memory shortages hit production. HONOR’s strong growth came from leveraging existing stock and early-year demand, rather than market expansion alone.

The report noted that Q4 2025 may be the final growth quarter for the entry segment. The market is reaching the limits of low-cost component stocks, and memory price hikes are expected to slow shipments in 2026.

However, the premium segment is healthy, underpinned by financing options, trade-in programmes, and a strong appetite for high-end devices.

Strong 5G adoption is pushing premiumisation in both established and emerging markets, including Jordan, Iraq, Tunisia, Egypt, Morocco, and Sierra Leone.

While geopolitical challenges fluctuated through the year, the market stayed resilient thanks to steady oil prices, consistent purchasing power, and demand for modern technology.

The iPhone 17 lineup overtook last year’s iPhone 16 series by 14% in early sales across the United States and China, as the base model nearly doubled sales in China. 

Analysts say that promotional discounts and coupons from retail channels in China further spurred demand.

Apple stock climbed 4.5% to $263.70, lifting its market capitalisation to $3.91 trillion and placing it just behind Nvidia, which currently holds the top spot with a valuation of over $4 trillion. The company is now set to become the third in history to reach that level, alongside Microsoft and Nvidia.

“The recent launch of online orders in China may be a positive tailwind for the Dec-qtr, as initial delivery time data reflects stronger initial demand relative to other regions at launch,” Evercore ISI analysts wrote in a note. 

The brokerage recently added Apple to its Tactical Outperform List, pointing to expectations that the company will surpass Wall Street forecasts for its current quarter and deliver optimistic guidance for the next.

Apple has been working to recover ground in China after a slow start earlier this year. The tech giant had faced competition from Huawei’s Mate 60 Pro and rising nationalist opinion that favoured local brands.

But the decision to open direct online orders in China, combined with faster delivery times, appears to have reignited momentum in the region.

Art Hogan, chief market strategist at B. Riley Wealth, said, “They rolled out the latest version of their iPhone and it’s doing much better than anticipated … the demand trends for the company’s iPhones are now on the front foot.”

In September, Apple unveiled its latest product range, including the thinner iPhone Air, while maintaining prices despite concerns over potential U.S. tariffs.

Earlier in the year, the company’s stock had been weighed down by trade issues and high import duties on goods from Asian manufacturing hubs such as China and India.

However, trust began to return in August after Apple announced a $100 billion investment plan in the United States, a move seen as both a strategic buffer against tariff risks and a reassurance to investors about its long-term outlook.

The rally in Apple’s shares also boosted suppliers such as Taiwan Semiconductor Manufacturing Company (TSMC), Hon Hai Precision, and LG Innotek.

Apple’s strong performance comes with a rally in the technology sector, driven by growing demand for AI chips, resilient consumer spending, and a change by investors towards mega-cap stocks. If the growth continues, Apple could soon join Nvidia and Microsoft in the elite $4 trillion club.

The company is scheduled to report its quarterly earnings on October 30.

The data shows that the base model iPhone 17 nearly doubled its sales in China compared to the iPhone 16 during the same launch period. Overall, the model recorded a 31% sales increase across both countries.

“The base model iPhone 17 is very compelling to consumers, offering great value for money,” said Mengmeng Zhang, senior analyst at Counterpoint. “A better chip, improved display, higher base storage, selfie camera upgrade – all for the same price as last year’s iPhone 16.”

What’s Behind the Surge

Counterpoint attributes the outstanding start to a series of hardware upgrades that give the iPhone 17 more value without a higher price. 

The device comes with a new A19 Bionic chip, a brighter OLED display, 256GB base storage, and an upgraded 12MP front camera with enhanced low-light performance.

These improvements appear to have struck a chord with users who skipped upgrading last year, with many seeing the iPhone 17 as a stronger, longer-lasting option. 

Analysts also noted that carrier subsidies and trade-in offers boosted early adoption, especially among younger buyers and urban professionals.

Earlier in 2025, Apple faced weak demand in China as competition from Huawei’s Mate 60 Pro and other homegrown brands heated up. The iPhone 17’s strong early showing now shows a potential rebound in market share.

Stores in Beijing, Shanghai, and Shenzhen reportedly saw long queues and sell-outs for the base and Pro Max models after the global launch in September 2025. Within a month, Apple had rolled out the series in over 40 countries, marking one of its fastest international expansions.

In short, the iPhone 17’s combination of noticeable performance upgrades, unchanged pricing, and a more consumer-friendly purchase model has given Apple the boost it needed to regain its footing in key markets.

This is its best two-month performance since the COVID-19 era and the profits are largely tied to renewed demand in China and the United States, its two largest and most volatile markets.

The latest data from Counterpoint Research show Apple reclaiming the top spot in China for May. But it didn’t happen by chance. 

The company rolled out aggressive discounts, as high as 2,530 yuan ($351), across e-commerce platforms in China, a move seen as necessary to compete with a fast-rising Huawei and other domestic rivals. Despite the bump in sales, this pricing strategy signals that Apple is under pressure.

“Q2 iPhone performance looks promising at the moment, but as always, swings either way are dictated by two markets – the U.S. and China,” said Ivan Lam, senior analyst at Counterpoint Research.

Apple is manoeuvring around geopolitical and economic challenges. In response to former President Trump’s proposed 25% tariff on non-U.S.-made iPhones, Apple rerouted 97% of its India-produced iPhones to the U.S. between March and May. This tactical shift helped shield the company from higher import costs, for now.

Still, the Chinese government has excluded Apple from some public sector subsidies, and Huawei is regaining the top place in the local market. Analysts believe this could drive Apple’s shipments down in 2025, even if the broader Chinese smartphone market grows by an estimated 3%.

The impact of global trade shifts isn’t limited to distribution routes. High tariff issues are beginning to affect product pricing. Counterpoint warns that Apple’s iPhone 17 series, expected next year, could come with higher price tags as production costs jump by an estimated $900 million due to U.S. tariffs.

Globally, Counterpoint has revised its 2025 smartphone shipment growth forecast to 1.9%, down from an earlier projection of 4.2%. The revision shows the worries over tariff disruptions and economic instability across major markets.

Despite short-term wins, Apple is still facing challenges. Between the strategic rerouting of production, deep discounts, government policy shifts, and growing local competition, the company is walking a tightrope.

And while sales are up today, sustaining that growth will depend on how well it can keep both the Chinese and American markets on its side.

According to data from Counterpoint Research, the company had a 19% market share, driven by the successful launch of the iPhone 16e. This model, replacing the iPhone SE, starts at $599 and has aligned particularly well in markets like Japan and India. 

However, while global sales for the smartphone industry grew by 3% year-over-year in Q1, there are signs that the market could face a decline for the rest of the year. 

This is largely due to economic instability and shifting trade policies, particularly those linked to tariffs imposed by the United States. “As per our current estimates, the tariff announcement did not lead to a major demand increase because of the uncertainty around tariffs and policy. Since tariffs were announced in April, it did not impact iPhone demand in Q1 2025,” said Ankit Malhotra, senior research analyst at Counterpoint.

Despite these economic issues, other companies in the smartphone market are holding their ground. Samsung, with its 18% market share, followed closely behind Apple, thanks to the launch of its new S25 series and refreshed A-series devices in March. 

Xiaomi also performed well, capturing 14% of the market as it continued to expand into new regions, particularly in China, and strengthened its brand presence with its move into the electric vehicle sector.

While Apple saw relatively flat or declining sales in traditional markets like the U.S., Europe, and China, it grew across emerging regions. The Middle East, Africa, and Southeast Asia were all marked by double-digit growth, contributing to Apple’s global success.

Again, the global smartphone market faces a tricky year ahead. Counterpoint Research has adjusted its forecast, now predicting a slight decline in the overall market, driven by economic uncertainties and fluctuating tariff policies. 

Emerging technologies, including generative AI and foldable devices, are expected to continue to gain traction. However, manufacturers will need to remain vigilant, closely monitoring demand and adjusting their strategies to avoid overproduction.