iPhone Sales in China Dip Amid Larger Smartphone Market Contraction

China’s smartphone market has begun to dip following six straight quarters of growth.

The International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker found that China’s smartphone market shipped 69 million units during the second quarter of this year, a 4% decline from the same period in 2024, according to a Tuesday (July 15) press release. IDC attributed the drop to limited boosts from government subsidies.

China’s Huawei was the country’s top seller, while Apple stayed in fifth place, per the release.

“The market softness emerged amid the uncertain economic outlook,” Will Wong, senior research manager for client devices at IDC Asia/Pacific, said in the release. “Nevertheless, Huawei returned to the top spot after more than four years, underscoring its strong brand appeal and effective shipment management… Furthermore, Apple narrowed its decline, leveraging strategic price adjustments that made specific iPhone 16 and 16 Pro variants eligible for government subsidies.”

Huawei commanded an 18.1% share of the market, shipping 12.5 million phones, compared to 9.6 million for Apple, down from 9.7 million in the second quarter of 2024. Rounding out the top five were vivo, OPPO and Xiaomi, according to the release.

“In Q2, the market momentum also experienced some impact from the rollout disruptions in the government subsidy program, though we anticipate a gradual resumption,” Arthur Guo, senior research analyst in client system research for IDC China, said in the release. “Despite the recent U.S.-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.”

In May, IDC predicted that the volume of worldwide smartphone shipments would be impacted by uncertainty, tariff volatility and a slowdown in consumer spending this year. The group lowered its projection for global smartphone shipments in 2025 from the 2.3% year-over-year growth it expected in February to 0.6%.

Meanwhile, smartphone maker Samsung forecasted a 56% drop in profits this year, due in part to uncertainty over trade policy in the United States.