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China’s smartphone market declined in Q2 2025, with shipments falling 4.0% year-over-year, according to new data from the International Data Corporation (IDC). The overall slowdown reflects a broader rend of consumer caution and extended upgrade cycles, as economic pressures weigh on demand.
Despite the downturn, Huawei claimed the top spot among smartphone vendors in China, capturing 18.1% of the market. The company’s strong performance underscores its growing dominance in the domestic market, driven by a resurgence in consumer interest and competitive device launches.
Vivo followed closely with a 17.3% market share, maintaining its position as a leading local brand. OPPO secured third place with 15.5%, while Xiaomi (OTC:XIACF) held 15.1%. U.S. tech giant Apple (NASDAQ:AAPL) ranked fifth, accounting for 13.9% of the market—marking a continued challenge in gaining ground against domestic rivals amid increasing competition and geopolitical headwinds.
The Q2 results highlight a reshaping of the competitive landscape in China’s smartphone industry. Local brands have strengthened their foothold, leveraging hardware innovation, aggressive pricing, and strong offline retail networks to capture market share. Huawei’s return to the top after years of regulatory challenges signals renewed momentum for Chinese tech firms in the face of foreign competition.
The IDC report also signals that while the overall market has shrunk, key players continue to compete intensely for consumer attention, with brand loyalty and ecosystem integration becoming crucial differentiators. As the second half of 2025 unfolds, market watchers will closely monitor how emerging technologies, 5G adoption, and macroeconomic conditions influence smartphone demand in the world’s largest mobile market.
