Xiaomi emerges as the top selling smartphone brand in China
Apple, on the other hand, took a hit.
For years, it has seemed like the smartphone market is out of gas. The days of real competition or meaningful shifts are behind us. Phones got smarter, yes—but the market itself? Predictable. Same players, same battles, slightly better cameras.
And yet, despite the U.S.-China tensions casting a shadow, China’s Q1 2025 smartphone numbers tell a different story. Not a market in decline, but one still capable of surprises—and comebacks.
According to preliminary data from IDC’s Worldwide Quarterly Mobile Phone Tracker, China’s smartphone market kicked off 2025 with solid momentum, shipping 71.6 million units in Q1—a 3.3% year-over-year increase. This growth beat the global average of 1.5%, though it still fell short of IDC’s earlier projections.
The main boost came from government subsidies rolled out in January, timed with the Spring Festival sales peak. But the actual impact on consumer demand was more muted than expected.
Arthur Guo, IDC China senior research analyst, noted that this was the sixth consecutive quarter of market growth. But he also pointed out that the complexity of subsidy distribution dampened its effectiveness. “It wasn’t the demand driver some hoped for,” Guo said.
Still, the quarter wasn’t short on movement. Xiaomi made a major comeback. The brand shipped 13.3 million units in Q1, leaping past competitors to claim the top spot in China for the first time in nearly ten years. Its 39.9% growth year-on-year was the sharpest among the top five. The report credited Xiaomi’s surge to its appeal to value-focused buyers who responded well to subsidies.
Huawei wasn’t far behind, also benefiting from the shift in consumer sentiment. It came in second, with 12.9 million units and a 10% YoY increase, followed by OPPO and vivo with modest gains.
Apple, on the other hand, took a hit. Shipments dropped 9% compared to the same quarter last year, slipping to fifth place. Its premium pricing made it harder for the company to capitalize on subsidies aimed at more budget-minded buyers
Looking ahead, the report notes that things could get trickier. Ongoing U.S.-China tensions and possible price hikes may squeeze both manufacturers and buyers. But for now, Q1 gave the market just enough of a lift to stay optimistic, at least cautiously so.
