Table of Contents
BEIJING: China’s smartphone market declined by 4% year-over-year in the second quarter of 2025, with total shipments falling to 67.8 million units, according to new data from Canalys. The drop follows the conclusion of a nationwide subsidy program, which had previously supported demand amid a competitive market.
Despite the overall downturn, China’s smartphone industry is still projected to outperform global smartphone trends in 2025 — thanks to a strong local brand presence and evolving consumer preferences.
Huawei Returns to the Top with HarmonyOS Boost
Huawei emerged as the top smartphone vendor in mainland China for Q2, shipping 12.2 million units and capturing 18% market share. The company saw a robust 15% year-on-year growth, propelled by its Nova 14 series powered by the upgraded HarmonyOS 5.0.
The success marks a significant comeback for Huawei, which had faced setbacks in recent years due to U.S. sanctions and chipset supply issues. Analysts attribute the turnaround to strategic localization, a loyal user base, and rapid software improvements through its homegrown OS.
Vivo and Oppo Follow Despite Sales Dip
Vivo secured the second spot with 11.8 million shipments and 17% market share, although it recorded a 10% decline compared to the same quarter last year. The brand leaned on segmented launches from its X200, S30, and Y300 series to stay competitive amid weakening consumer demand.
4thrives Esports Qualifies for PMWC 2025 Grand Finals
Close behind, Oppo (including OnePlus) ranked third, shipping 10.7 million units with a 16% market share. The company experienced a 5% drop in shipments as it navigated a market affected by reduced incentives and cautious spending.
Xiaomi and Apple Neck-and-Neck
Xiaomi reported 10.4 million units shipped, claiming 15% of the market with a modest 3% growth over Q2 2024. The company’s performance was boosted by a diversified portfolio and strong online sales channels.
Apple followed closely with 10.1 million shipments, also capturing 15% market share and achieving 4% annual growth. The U.S. tech giant has managed to retain its premium segment hold, particularly in urban centers, even as domestic brands increasingly target the high-end market.
Subsidy Withdrawal Casts Shadow Over H2 2025
Canalys analysts warned that the withdrawal of government subsidies may dampen consumer enthusiasm in the second half of 2025. Vendors are now under pressure to innovate, differentiate, and possibly adjust pricing strategies to sustain momentum.
“Without the support of national incentives, maintaining shipment volumes will be a challenge,” the report noted. “The focus now shifts to brand loyalty, ecosystem integration, and value-added services.”
Conclusion
While Q2 2025 marks a setback in overall smartphone shipments in China, it also highlights the resilience of local brands like Huawei, which have successfully adapted to a rapidly changing market. As the year progresses, consumer response to new technologies like AI-powered phones, custom chipsets, and next-gen mobile experiences will determine the next phase of growth.
