Smartphone spending in China showed a modest decline in Q2 2025, with shipments falling 2.4 percent year-on-year, according to Counterpoint Research report.
The downturn in the China smartphone market reflects seasonal weakness and a strategic shift by OEMs, many of which had already launched flagship models earlier in the year to capitalize on a national subsidy program. This frontloading of demand, coupled with ongoing inventory destocking, limited momentum during the quarter. Although local subsidies were narrowed or delayed in some regions, the broader national subsidy initiative is expected to remain in place through the year.
Major smartphone brands
In Q2 2025, Huawei led the China smartphone market with an 18.1 percent share, up from 15 percent a year earlier, supported by the success of its Nova 14 series and discounts on high-end models.
Vivo secured second place in the China smartphone market, benefiting from its strong offline presence and the popularity of its Y series in lower-tier cities, while the S30 series gained momentum with youth-focused features and promotions.
OPPO sustained its position in the China smartphone market through the timely launch of the Reno 14 ahead of the mid-year shopping festival, appealing to female users with its design, while its sub-brand OnePlus grew by targeting tech-savvy male users with gaming-optimized devices.
Xiaomi grew steadily to capture a 15.7 percent share in the China smartphone market, leveraging price cuts on popular models and debuting its self-developed Application Processor, the Xring O1.
Apple saw strong iPhone 16 sales during the June promotions due to record discounts, though this may affect future demand for the iPhone 17 base models in the China smartphone market.
HONOR worked to regain lost ground in the China smartphone market by diversifying its product lineup, with the HONOR 400 series showing early success through high-end features at competitive prices.
Outlook
Despite sluggish demand in Q2, promotions and subsidies played a stabilizing role, preventing further deterioration in the China smartphone market. The market is projected to return to positive year-on-year growth in 2025, though the pace will be slower than in previous years.
Expectations are more optimistic for the second half of the year, with summer campaigns and the earlier-than-usual launch of Q3 flagship devices likely to drive a rebound. These factors could set the stage for stronger performance in Q4 2025, positioning the market for a gradual recovery.
TelecomLead.com News Desk
