Huawei followed closely, shipping 13.0 million units with consistent double-digit growth. OPPO and vivo ranked third and fourth, with 10.6 million and 10.4 million units, respectively. Apple, shipping 9.2 million units, fell to fifth, experiencing an 8% year-on-year decline after a strong Q4 2024. Amber Liu, Research Manager at Canalys, stated: “The nationwide device subsidy program implemented in January 2025 provided moderate support to the market.”
The subsidy program, launched in January 2025, accelerated replacement demand, though it primarily shifted purchases forward rather than creating new growth. Vendors maintained healthy inventory levels, and the policy is expected to reshape channel dynamics by strengthening major retailers like JD.com and Tmall. Toby Zhu, Principal Analyst at Canalys, noted: “To consolidate their market positions and drive premiumization, vendors are increasing investments in brand store expansion, in-store experience optimization, and deeper channel partnerships.”
Xiaomi’s leadership stemmed from its integrated ecosystem of smartphones, AIoT devices, and electric vehicles, coupled with consistent pricing across channels. Huawei’s growth was supported by robust channel management and innovations like the Pura X foldable and the HarmonyOS Next rollout, which will upgrade devices like the Nova 12 and 13 series. Lucas Zhong, Analyst at Canalys, said: “HarmonyOS Next is expected to account for 3% of Mainland China’s smartphone install base by 2025, with rapid growth anticipated.”
AI-capable smartphones, accounting for 22% of shipments in 2024, are projected to exceed 40% in 2025, driven by innovations in foldables and operating systems. Zhong added: “Continued innovation in foldable devices, AI-capable smartphones and operating systems will be critical drivers for structural market transformation and long-term growth.” The rise of DeepSeek has further fueled interest in AI, emphasizing the need for open, agile ecosystems.
Despite global trade uncertainties, China’s market resilience is supported by targeted consumer stimulus. Vendors are focusing on differentiated products, flexible pricing, and stronger channel partnerships to capture growth. The evolving competitive landscape underscores the importance of innovation and collaboration in sustaining the market’s upward trajectory.
