• China smartphone shipments fell in Q2 2025 hurt by frontloaded demand from earlier subsidies.

• Huawei led the market with a 17.6% YoY rise in shipments, fueled by the strong performance of its new mid-to-high-end models.

• Major Q2 highlights included price cuts on Apple’s iPhone 16 series and intensified competition among newly launched mid-range products.

• The diminishing marginal impact of national subsidies on smartphone demand may prompt some brands to prioritize inventory destocking in the coming months.

Beijing, Berlin, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi, Seoul, Taipei, Tokyo – July 22, 2025

China smartphone shipments declined 2.4% YoY in Q2 2025, according to the preliminary numbers from Counterpoint Research’s Q2 2025 Market Monitor Tracker. Smartphone demand was weak during the quarter due to Q2 seasonality. Furthermore, the quarter saw fewer new launches as many OEMs had released them earlier than usual to frontload demand and catch the benefits of the national subsidy program. Some OEMs have transitioned from inventory buildup to destocking, which also hurt shipments during the quarter. Although some local governments have narrowed the scope of subsidies or delayed sending out subsidy credits, the national program is expected to continue throughout 2025.

In Q2 2025, Huawei maintained its leadership position for the second consecutive quarter, with its shipment share rising to 18.1% from 15% in the year-ago quarter. The YoY growth was primarily driven by the strong performance of Huawei’s mid-range Nova 14 series and generous discounts on the brand’s high-end models.

vivo ranked second in terms of share during the quarter, helped by the strong performance of its mid-to-low-end models. The brand’s strong offline footprint continued to support its Y series in lower-tier cities. Meanwhile, the newly launched S30 series saw robust demand over the summer, driven by back-to-school promotions, helping the model gain traction among young consumers with its vibrant design and portrait photography capabilities.

OPPO’s timely launch of the Reno 14 before the June 18 shopping festival helped it carry forward the strong sales momentum of the Reno 13. The Reno 14 stood out with its fashionable design tailored to young female users. Its sub-brand OnePlus has delivered impressive growth so far this year, with the brand becoming more precise and focused on addressing the needs of tech-savvy male users and younger audiences, gaming being one of the key use cases. To enhance the gaming experience, OnePlus developed a chip-level game engine that is integrated deep into the chip’s architecture to boost the gaming performance. This technology was first introduced to the OPPO’s best-selling Ace 5 series and will be extended to other product lines in the future.

Xiaomi was the second fastest-growing brand in Q2 2025 with a 15.7% market share. Despite the absence of new mid-tier product launches during the promotional period, Xiaomi maintained its growth momentum through price reductions on popular models such as the Redmi K80 and Mi 15. Additionally, Xiaomi introduced its first self-developed Application Processor, the Xring O1, featured in the Xiaomi 15S Pro.

Apple performed strongly during the ‘618’ sales period, fueled by the biggest-ever price discounts on the iPhone 16 series, particularly the Pro models, which are more popular among Chinese consumers. Although the price cuts stimulated iOS users to replace their devices earlier, it may pressure iPhone 17 base model sales in the second half of the year.

HONOR is navigating intense market competition and aiming to regain momentum through an expanded product portfolio. The mid-end HONOR 400 series, released in late May, saw a good start, highlighted by strong features such as a 200MP rear main camera, large 7200mAh battery and competitive pricing.

Summary and Outlook

In Q2 2025, smartphone demand in China weakened in line with Counterpoint’s expectations. While promotions and subsidies failed to generate new demand, they contributed to stabilizing sales. Looking ahead, the market is expected to post YoY growth in 2025 but at a narrower rate. Summer promotions, combined with the earlier release of new flagship models in Q3 2025 will likely help lift sales and establish a solid foundation for a robust market performance in Q4 2025. Meanwhile, Counterpoint continues to closely monitor the global market’s ever-shifting landscape, especially on the sectoral tariffs, rising component costs and subsequent consumer demand.

About Counterpoint Research

Counterpoint Research is a global market research firm specializing in products across the technology ecosystem. We advise a diverse range of clients – from smartphone OEMs to chipmakers and channel players to Big Tech – through our offices located in the world's major innovation hubs, manufacturing clusters and commercial centers. Our analyst team, led by seasoned experts, engages with stakeholders across the enterprise – from the C-suite to professionals in strategy, analyst relations (AR), market intelligence (MI), business intelligence (BI), product and marketing – to deliver services spanning market data, industry thought leadership and consulting. Our core areas of coverage include AI, Automotive, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks and Infrastructure, Semiconductors, Smartphones and Wearables. Visit our Insights page to explore our publicly available market data, insights and thought leadership, and to understand our focus, meet our analysts and start a conversation.

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