Notes: OPPO includes OnePlus; Xiaomi includes Redmi; vivo includes iQOO; Figures may not add up to 100% due to rounding; Numbers are preliminary and may change during finalization.

Huawei led for the second consecutive quarter with a share of 19.4%, its highest ever since 2021. Huawei has consolidated its dominance in the market due to strong demand for the Nova 13 and flagship Pura 70 series. The national subsidy coupled with price cuts for hot-selling models and strong performance in the premium price band of $600-$799, where Huawei currently leads, contributed to the growth.

The second spot was taken by vivo, with its market share rising to 17% from 16.3% in Q4 2024. vivo’s budget-friendly Y series contributed most of its sales. Meanwhile, it also made progress in the high-end segments. Its premium X200 series inherited the brand’s strong photography reputation, with consumers recognizing its photo quality and its collaboration with Zeiss.

Xiaomi was the second-fastest-growing brand during the quarter with a market share of 16.6%. The brand is benefiting from the government subsidies that apply to the majority of its portfolio. However, it is also gaining share in the premium segment, thanks to the halo effect of its entry into the EV segment and expansion of offline retail. In Q1, the brand introduced the Xiaomi 15 Ultra and unveiled a photography kit for the Mi 15 Ultra to offer an experience similar to that of a traditional camera.

OPPO and Apple captured the fourth and fifth spots, respectively. While OPPO’s A series performed well during the quarter, its Reno 13 series helped the brand gain share in the mid-tier segment. OPPO has also been doubling down on its AI strategy, bringing AI features to its broader portfolio. Apple’s sales declined as most of its portfolio is priced above the subsidy threshold, including its best-performing Pro models.

Chinese smartphone OEMs are aggressive in adopting the strategy of “high specs with a competitive price”. As a result, their market shares have grown significantly in the mid-to-high-end price segments.

Other key insights

DeepSeek drives on-device AI race: Close to 40% of the smartphones sold in China during the quarter were GenAI-enabled, according to Counterpoint’s Global GenAI Smartphone Tracker. Capitalizing on DeepSeek's emergence and its global impact during the quarter, leading Chinese smartphone OEMs quickly integrated or have plans to integrate its advanced models to enhance on-device AI and end-user experience.

Foldables become next big frontier: In the foldable segment, OPPO launched the Find N5, claiming it to be the thinnest foldable phone. Huawei released a clamshell model, the Pura X, with a starting price of CNY 7,499 (about $1,028). The model, which stands out with its unconventional 6.3-inch display in the 16:10 ratio, continues to lead the segment.

Bigger batteries and durability are differentiators: OEMs are expected to launch more models in Q2 with innovative technologies to boost sales. HONOR has unveiled HONOR Power, a new product line featuring an 8000 mAh battery to address customers’ demand for long battery life.

Looking ahead

The Q1 growth fell short of expectations with demand falling during the second half of the quarter. Promotions and subsidies only frontload demand rather than creating a new one. Looking ahead, we still believe the market will post YoY growth for 2025 but at a smaller rate. OEMs will launch new models in Q2, and the mid-year sales festival will still have the potential to lift sales. However, the US-China trade tensions have added a layer of uncertainty. We are tracking the space closely, especially on the sectoral tariffs that can have an overall impact on the global economy and subsequent consumer demand.