The Chinese smartphone market is showing signs of recovery. In Q1 2025, sales rose 5% year-over-year to 70.9 million units. Xiaomi and Huawei led the charge, driven by government incentives and innovative products.
Government Subsidies Boost Sales
A government program launched on January 8, 2025, offered a 15% discount on domestic tech purchases, including smartphones under $830. This move benefited Xiaomi, whose sales surged 40% to 13.3 million units, capturing 19% market share. The discounts were capped at $70.
Huawei’s Continued Success
Huawei followed closely, selling 13 million units, a 12% increase from the previous year, and holding 18% market share. The brand’s popularity stems from innovative products like the Mate XT, a triple-fold smartphone, and the expanding HarmonyOS Next operating system, now reportedly installed on 3% of China’s smartphones.
Other Key Players
Other major brands in the Chinese market include:
- OPPO – 15% market share
- vivo – 15% market share
- Apple – 13% market share, the only foreign brand in the top 5
The government’s subsidy program has clearly impacted the market, favoring budget-friendly options. Premium and foldable smartphones were excluded from the discounts. As the market continues to evolve, it will be interesting to see how these trends shape the industry.