After two years of decline, China’s smartphone market experienced a notable recovery in 2024, with shipments growing by 5.6% year-over-year, reaching approximately 286 million units, according to IDC.
This rebound marked a significant shift driven by pent-up demand for device upgrades, government consumption subsidies, and technological advancements in areas like generative AI, screens, and battery performance.
However, the market recovery was uneven, with some brands capitalizing on the opportunity better than others. As the country heads into 2025, policymakers and brands alike are positioning themselves to sustain this growth.
Market Leaders and Competitive Dynamics
The 2024 landscape saw vivo, Huawei, and Apple secure the top three spots, with each brand adopting distinct strategies to navigate a competitive and shifting market.
vivo: The Market Leader with Broad Coverage
Maintaining its position as China’s top smartphone brand in 2024, vivo’s success stemmed from a comprehensive product lineup that spanned all price segments.
The company leveraged its innovative technology-driven strategy, enhancing both hardware and software capabilities while maintaining close collaboration with upstream suppliers and channel partners.
This ecosystem-driven approach allowed vivo to cater to diverse consumer needs, from entry-level to premium offerings.
Huawei: A Remarkable Comeback
Huawei’s resurgence was the highlight of 2024, with a staggering 50% increase in shipments, making it the second-largest player in the Chinese market, according to IDC’s report.
The company’s ability to secure domestic chip supplies played a pivotal role in reviving its nova and Enjoy series, broadening its appeal to a larger audience. Additionally, the rollout of the HarmonyOS Next system strengthened Huawei’s ecosystem integration, positioning it as a critical player in the multi-device ecosystem.
According to Canalys, Huawei achieved a 37% year-over-year growth in overall shipments, underscoring its robust recovery.
Apple: High-End Dominance, But Declining Overall
Despite its dominance in the premium market, where it held 60% of sales for devices priced above $800, Apple’s overall market share shrank, according to IDC’s analysis.
The iPhone 16 series struggled to gain traction, contributing to a 17% drop in shipments for the year.
Both IDC and Canalys highlighted Apple’s challenges in retaining competitiveness due to delayed AI feature rollouts and ineffective channel reforms.
The company’s future growth in China now hinges on its upcoming releases, particularly the rumored iPhone 16E and revamped iPhone 17 series.
Xiaomi: Strengthening High-End Market Presence
Xiaomi’s strategy of focusing on high-end devices paid off, with its 600-dollar-plus market share reaching a two-year high.
The company leveraged its diversified ecosystem, including smart appliances and electric vehicles, to bolster smartphone sales.
However, inconsistent performance led to mixed results, and Xiaomi is now under pressure to refine its approach to product segmentation and offline channel expansion.
OPPO and Honor: Resilient Contenders
Honor and OPPO both secured top-five positions, although their shipment volumes slightly declined. OPPO’s Find X8 flagship series and Reno series drove growth in the mid-to-high-end segments, while Honor’s innovations in foldable and lightweight devices continued to attract consumers.
Honor’s efforts to increase overseas sales, which now account for nearly a third of its total shipments, could be a vital growth lever in 2025.
The Rise and Stagnation of Foldable Phones
Foldable smartphones witnessed impressive growth in early 2024, but the market showed signs of saturation by year-end, as highlighted by IDC.
IDC reported that Q4 shipments of foldables fell by 9.6% year-over-year, the first decline in nine quarters. While innovations in weight reduction, battery life, and display quality kept consumer interest alive, challenges related to price, durability, and practical applications hindered wider adoption.
Huawei remained the market leader in foldables, holding nearly 50% of the segment, followed by Honor and vivo.
Despite this slowdown, foldables still recorded an annual growth of 30.8%, with overall shipments reaching 9.17 million units in 2024.
However, analysts predict that 2025 will be a ‘consolidation year’ for the segment, with many brands taking a cautious approach..
Policy-Driven Growth and Challenges Ahead
Government consumption subsidies played a crucial role in reviving the smartphone market, according to both IDC and Canalys, and the continuation of these policies in 2025 is expected to sustain growth.
However, IDC’s research manager Guo Tianxiang warned that over-reliance on subsidies could lead to demand being pulled forward, potentially creating a future slump. Brands need to strategically adjust production and inventory management to mitigate this risk.
Key Trends to Watch in 2025
As China’s smartphone market enters 2025, several key trends are expected to shape its trajectory:
- Huawei’s Expansion: With a complete transition to domestically produced chips and its HarmonyOS ecosystem, Huawei is poised to challenge vivo for the top spot.
- High-End Market Shifts: Apple’s upcoming iPhone 16E and iPhone 17 series could help it regain lost ground, but competition from Huawei’s premium offerings will be intense.
- Diverging Strategies: Brands like Xiaomi are refining their product lines to differentiate Redmi from flagship models, while OPPO and vivo continue to rely on “mass-market” strategies with frequent product launches.
- Foldables in Flux: While growth is expected to slow, innovations could rejuvenate consumer interest, especially if brands address pricing and durability concerns.
Conclusion: Navigating a Dynamic Landscape
The Chinese smartphone market’s recovery in 2024 offered much-needed relief to domestic brands, but the road ahead remains uncertain. Success in 2025 will depend on brands’ ability to leverage government policies, innovate rapidly, and navigate intensifying competition, particularly from Huawei’s aggressive resurgence.
With evolving consumer demands and technological breakthroughs on the horizon, the market is set for another eventful year.
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