The Chinese smartphone market experienced minimal growth during the second quarter of 2025, with a modest 1% year-over-year increase in total shipments. Despite this, Huawei and Apple emerged as the leaders in the region, according to a report from Counterpoint Research. Huawei took the lead with an impressive 12% growth in shipments, which is attributed to both strong demand during the annual 618 shopping festival and continued success from government subsidies. These subsidies, aimed at promoting affordable electronics, cover devices priced below CNY 6,000 ($820), including smartphones, tablets, smartwatches, and smart bands, offering discounts of up to CNY 500 ($68).
However, the future of these subsidies remains uncertain, with speculation that they may be scaled back in the second half of the year.
Apple, the only other brand in the top five to show positive growth, saw an 8% increase in shipments. The iPhone 16 series saw significant demand in May, largely due to strategic discounts leading up to China’s 618 shopping event. Apple’s ability to maintain a strong presence in China, alongside local brands like Huawei, underscores its continued popularity, even in the face of strong competition.
Despite these successes, the Chinese market remains competitive. While Apple and Huawei dominate, other global players such as Samsung struggle to maintain visibility in China, a market that favors local brands. Huawei’s performance highlights its adaptation to domestic needs, while Apple’s success points to the global appeal of its ecosystem, transcending local market dynamics.