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According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China's smartphone market shipped 69.0 million units in 2Q25, marking a 4.0% year-on-year (YoY) decline. This represented the first contraction after six consecutive quarters of growth, attributed to limited uplifts from government subsidies. Most smartphone OEMs prudently adjusted their shipment pace and channel inventory, leveraging the “618” online shopping festival to reduce existing channel inventory.
"The market softness emerged amid the uncertain economic outlook. Nevertheless, Huawei returned to the top spot after more than four years, underscoring its strong brand appeal and effective shipment management," said Will Wong, senior research manager for Client Devices at IDC Asia/Pacific. "Xiaomi was also a notable performer, with its value-conscious customer base allowing it to be the only Top 5 OEM to record growth," added Wong. “Furthermore, Apple narrowed its decline, leveraging strategic price adjustments that made specific iPhone 16 and 16 Pro variants eligible for government subsidies.”
"In Q2, the market momentum also experienced some impact from the rollout disruptions in the government subsidy program, though we anticipate a gradual resumption," said Arthur Guo, senior research analyst in Client System Research for IDC China. "Despite the recent US-China trade truce, the broader economic environment presents ongoing challenges, with consumer confidence remaining subdued. This suggests that a significant uplift in smartphone demand is unlikely in the immediate term, and the market will navigate a more complex landscape in the second half of the year.”
