Huawei has overtaken rivals to become the leading smartphone vendor in China once again, according to data from Canalys.
The company shipped 12.2 million units in the second quarter of 2025, marking a 15% increase year on year and reclaiming an 18% market share.
Apple, after a period of sluggish performance, climbed back to growth in China with 10.1 million shipments, a 4% increase over the same period in 2024.
The figures reflect rising competition in one of the world’s most valuable smartphone markets, just days ahead of Apple’s quarterly earnings release.
Huawei’s aggressive product rollout and continued development of HarmonyOS appear to be shifting the dynamics in a market where Apple once held the upper hand.
Huawei’s rebound follows 2023 relaunch amid US sanctions
Huawei’s resurgence comes after its smartphone division was severely impacted by US sanctions in recent years.
By the end of 2023, however, the Chinese tech giant had re-entered the market with multiple new models that quickly gained traction.
The June 2025 quarter marks Huawei’s first return to the number-one spot since Q1 2024.
Part of Huawei’s strategy included strengthening its in-house HarmonyOS, now in its fifth iteration, which the company is rolling out across smartphones and other devices.
This move is designed to expand its ecosystem and reduce reliance on Android, with system compatibility and user experience becoming key focus areas.
Apple’s growth aided by pricing strategy and trade-in offers
Apple’s 10.1 million unit shipments placed it fifth in China’s vendor rankings for the quarter.
While it remains behind local competitors like Huawei and Xiaomi, the Cupertino firm has recorded its first quarter of growth in China since Q4 2023.
The recovery is linked to Apple’s strategic price adjustments for its iPhone 16 series.
E-commerce partners in China offered discounts, and Apple increased trade-in values for older iPhone models, all contributing to the uptick in shipments.
The Canalys report aligns with recent findings from Counterpoint Research, which also noted Apple’s Q2 growth in the country.
With China being Apple’s third-largest market, any sign of stabilisation is likely to ease investor concerns ahead of its earnings call.
Apple stock down 14.5% YTD amid China concerns
Despite the growth in China, Apple shares have dropped approximately 14.5% so far in 2025.
The decline has been partly driven by concerns over weak demand in China and mounting geopolitical pressure.
US President Donald Trump recently warned Apple of possible tariffs and urged the company to shift iPhone manufacturing to the United States—an impractical proposition, according to many analysts.
These tensions have further complicated Apple’s supply chain outlook, even as it attempts to stabilise performance in Asia.
China smartphone market sees rising local competition
The broader Chinese smartphone market is seeing increased activity from domestic brands, especially Huawei and Xiaomi.
These companies are rolling out flagship models with enhanced AI features, competitive pricing, and locally developed operating systems.
Huawei’s HarmonyOS 5 is at the centre of this trend, helping the firm draw users into its independent software ecosystem.
As it scales this platform across devices, Huawei aims to strengthen its user retention and reduce its dependency on foreign technologies.
Apple’s path forward in China will likely depend on balancing its premium brand position with localised strategies.
As Huawei continues its expansion, the competition is expected to intensify through the rest of 2025.
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