After facing significant challenges in one of its most critical markets, Apple has recorded growth in China for the first time since late 2023. Meanwhile, Huawei has reclaimed the top position in China’s competitive smartphone market, according to new data from technology market analyst firm Canalys.
Huawei’s Comeback in China
Huawei shipped an impressive 12.2 million smartphones in China during the second quarter of 2025, marking a 15% year-on-year increase. This achievement has propelled Huawei to an 18% market share, making it the leading smartphone brand in China for the first time since early 2024.
Huawei’s resurgence comes after its smartphone business was heavily impacted by U.S. sanctions in previous years. Since its comeback in late 2023, the company has aggressively launched new products and introduced HarmonyOS 5, its proprietary operating system. This OS not only challenges Google’s Android and Apple’s iOS but also aims to expand Huawei’s independent ecosystem.
Lucas Zhong, an analyst at Canalys, remarked that HarmonyOS 5 is likely to accelerate the growth of Huawei’s user base while presenting unique challenges in terms of system compatibility and user experience.
Apple’s Strategic Growth in China
As Huawei climbed to the top, Apple shipped 10.1 million smartphones in China during the same quarter, reflecting a 4% increase year-on-year. This marks Apple’s first return to growth in the Chinese market since the fourth quarter of 2023.
Apple’s growth is attributed to several strategic moves:
- Pricing Adjustments: Apple strategically reduced the prices of its iPhone 16 series in China.
- Trade-in Programs: The company increased trade-in values for older models, making upgrades more appealing to customers.
- Support from E-commerce Platforms: Chinese e-commerce giants offered significant discounts on iPhone 16 models, helping boost shipments.
Despite these positive developments, Apple still ranks fifth in the Chinese smartphone market, trailing behind strong local competitors, including Huawei and Xiaomi.
Challenges and Opportunities for Apple
Apple’s resurgence in China is a welcome sign for investors, especially as the company has faced mounting pressure from Wall Street over its performance in the region. However, competition remains fierce.
Huawei, with its localized ecosystem and strong brand loyalty, continues to pose a significant threat. Moreover, geopolitical tensions and U.S. policies targeting Chinese tech companies have created additional complexities for Apple.
Notably, Apple CEO Tim Cook has been urged by U.S. policymakers to move iPhone manufacturing to America, a transition experts consider nearly impossible given the scale and cost advantages of China’s supply chain infrastructure.
What’s Next for the Smartphone Market in China?
The competition in China’s smartphone market is expected to intensify further. Huawei’s new operating system and product launches signal its commitment to challenging Apple and other global players. Meanwhile, Apple’s ability to sustain growth in China will largely depend on its pricing strategy, product innovation, and ability to navigate geopolitical headwinds.
Investors are eagerly awaiting Apple’s quarterly earnings report, which will shed more light on its performance in China and other key markets.
