Data for May 2025 marked a decrease compared to three months ago. According to the latest data from a government-run research institute, the number of smartphones sold in China in May 2025 decreased by 21.8% compared to the same period last year, down to 23.7 million units, the largest decrease this year.
Foreign brands, including Apple's iPhone, saw their shipments in May this year fall by 9.7% year-on-year.
Domestic manufacturers, including Huawei technology and Xiaomi, have seen their shipments fall by a total of 24.2% in China, according to data released by the China Institute of Information and Communications Technology (CAICT), under the Ministry of Industry and Information Technology.
According to experts, Chinese smartphone brands have had difficulty launching new products. In May, Chinese brands launched 36 new models, down 25% year-on-year. In addition, the decline in smartphone purchases also comes from other reasons such as a long replacement cycle, a saturated market and a difficult economic situation.
Since last year, the Chinese government has provided subsidies to encourage consumers to exchange their electronic devices and accessories. This year, the program has been expanded from replacing products to new purchases. For example, a 15 to 20% discount for certain items, including smartphones priced under 6,000 yuan ($827).
Apple, a company that has most of its products that are not eligible for subsidies due to higher costs, has a 9% decrease in shipments in China in the first quarter of 2025, according to market research firm IDC.
However, Apple's second quarter sales increased by 8%, according to Counterpoint Research, thanks to the company's strong discount campaigns. As a result, some of the company's models, such as the iPhone 16 Pro, are cheap enough to qualify for government subsidies.
In early June, some local governments suspended subsidies, such as the provinces of Jiangsu and Hubei, causing uncertainty about the recovery of the consumer market. It is expected that in the third and fourth quarters of the year, the subsidy program will be reinvested.
