Mainland China’s smartphone market grew 5% in Q1 2025, Xiaomi returned to top after decade 

Canalys’ (now part of Omdia) latest research reveals that Mainland China’s smartphone market shipped 70.9 million units in Q1 2025, marking a 5% year-on-year growth. The recovery was supported by national subsidy policies and a gradual rebound in consumer sentiment, extending the upward momentum seen since early 2024. Xiaomi shipped 13.3 million units in the quarter, up 40% year on year, regaining the pole position in Mainland China’s smartphone market for the first time in a decade. With a market share of 19%, Xiaomi benefited from the synergies across its smartphone, AIoT and mobility ecosystem, as well as strong execution under the national subsidy scheme. Huawei followed closely with 13.0 million units, maintaining double-digit growth. OPPO and vivo ranked third and fourth, with 10.6 million and 10.4 million units shipped, respectively. Apple dropped to the fifth position, shipping 9.2 million units, marking a decline of 8% year on year following its seasonal peak in Q4 2024. 

“The nationwide device subsidy program implemented in January 2025 provided moderate support to the market,” said Amber Liu, Research Manager at Canalys (now part of Omdia). “While the policy brought forward some replacement demand, it was more about a temporary pull-in rather than generating organic growth. Vendors maintained rational inventory management and overall channel stock levels remained healthy. Beyond the short-term volume boost, the policy is expected to have a more lasting impact on channel dynamics. To consolidate their market positions and drive premiumization, vendors are increasing investments in brand store expansion, in-store experience optimization, and deeper channel partnerships. The subsidy policy has further reinforced the dominance of leading retailers and major ecommerce platforms such as JD.com and Tmall.” 

“Xiaomi’s strong Q1 performance, which propelled it back to the top of the market, was driven by the effective synergy between its product ecosystem and channel strategy,” said Toby Zhu, Principal Analyst at Canalys (now part of Omdia). “Its consistent pricing across online and offline channels minimized decision friction under the subsidy scheme, while its broad portfolio—from wearables, PCs to AIoT and EVs—enabled maximum eligibility for subsidies and encouraged bundled purchases. Meanwhile, Huawei continued to deliver stable double-digit growth through robust channel management. Following the Mate XT, the launch of Pura X further pushed the boundaries of foldable form factors. Strategically, Huawei is accelerating its HarmonyOS Next ecosystem rollout—including bringing the upgrade to the Nova 12 and 13 series—which is set to reshape the domestic operating system landscape and strengthen its competitive moat. HarmonyOS Next is expected to account for 3% of Mainland China’s smartphone install base by 2025, with rapid growth anticipated.” 

“DeepSeek’s rapid rise has reignited consumer and industry interest in AI capabilities, once again highlighting that in today’s evolving AI landscape, success hinges on building open, compatible ecosystems and executing with agility,” said Lucas Zhong, Analyst at Canalys (now part of Omdia). “As of 2024, AI-capable smartphones account for 22% of Mainland China’s shipments. A figure projected to exceed 40% in 2025. Continued innovation in foldable devices, AI-capable smartphones and operating systems will be critical drivers for structural market transformation and long-term growth.” 

“2025 will be a year of navigating turbulence while seeking breakthroughs,” added Zhong. “Despite rising uncertainty in global trade, Mainland China’s macroeconomic resilience will be underpinned by continued policy support and targeted consumer stimulus. In this increasingly dynamic and competitive landscape, vendors must differentiate through product and value propositions, maintain unified yet flexible pricing strategies, and deepen collaboration with channel partners to capture growth opportunities.” 

For more information, please contact:

Amber Liu: amber_liu@canalys.com 
Toby Zhu: toby_zhu@canalys.com  
Lucas Zhong: lucas_zhong@canalys.com 

About Smartphone Analysis

Canalys’ worldwide Smartphone Analysis service provides a comprehensive country-level view of shipment estimates far in advance of our competitors. We provide quarterly market share data, timely historical data tracking, detailed analysis of storage, processors, memory, cameras and many other specs. We combine detailed worldwide statistics for all categories with Canalys' unique data on shipments via tier-one and tier-two channels. The service also provides a unique view of end-user types. At the same time, we deliver regular analysis to give insights into the data, including the assumptions behind our forecast outlooks. 

About Canalys

Canalys, now part of Omdia, is a leading global technology market analyst firm with a distinct channel focus. We strive to guide clients on the future of the technology industry and to think beyond the business models of the past. We’ve delivered market analysis and custom solutions to technology vendors worldwide for over 25 years. Our research covers emerging, enterprise, mobile and smart technologies. Understanding channels is at the heart of everything we do. Our insightful reports, data and forecasts inform our clients’ strategies, while the Canalys Forums and Candefero online community give the channel feedback opportunities. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

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