In 2026, the global consumer electronics sector faced significant headwinds, primarily due to soaring memory chip prices. Smartphones, in particular, were hit hard, with annual sales projected to decline by over 15%.

The PC industry was not spared either. Memory chips, being a non-negotiable cost component for PCs, drove up prices noticeably compared to the previous year. Coupled with the lengthy PC replacement cycle—where users often opt to extend the lifespan of their current devices—the market was braced for a downturn.

However, against all expectations, China’s PC market bucked the trend in the second quarter of 2026. Sales soared to 11.4 million units, marking an 11% year-on-year increase—a remarkable feat amidst a sluggish global environment.

In terms of brand performance, the top five players—Lenovo, Huawei, iSoftStone, Apple, and ASUS—dominated the market, collectively capturing 78% of the share. This represented an 11-percentage-point surge from the previous year’s 67%, signaling heightened market concentration and diminished opportunities for smaller brands.

When it comes to growth rates, Huawei emerged as the standout performer, with an astonishing 82% increase. Its market share jumped from 10% in the same period last year to 16%, a 6-percentage-point gain. This brought it to half of Lenovo’s share, a significant leap from less than one-third in the prior year.

iSoftStone followed closely, growing by 71% and securing a 12% market share—a 4-percentage-point rise from the previous year.

Apple also witnessed substantial growth, with a 63% increase, making it the third-fastest-growing brand. Its share climbed to 10%, propelling it to the fourth position and overtaking ASUS.

ASUS was the outlier, experiencing a 5% decline, with its market share dropping to 7%. While Lenovo also posted a 7% growth, it lagged behind the overall market, effectively translating to a relative decline. Its share dipped from 34% in the same period last year to 32%, a 2-percentage-point decrease.

Smaller brands bore the brunt of the market shift. Their collective share plummeted from 33% last year to just 22% this year—a direct one-third drop and a 26% decline. If this trend persists, their survival could become increasingly precarious.

Many observers have speculated that Huawei will eventually overtake Lenovo in the domestic market. Given the current trajectory, it’s difficult to dismiss this possibility outright. After all, with an 80%+ growth rate, Huawei could potentially close the gap with Lenovo in just one or two more quarters.

Yet, sustaining such explosive growth is no easy feat. While it’s manageable when starting from a small base, maintaining momentum becomes daunting once sales volumes reach substantial levels. Only time will tell how this dynamic unfolds.