Despite facing significant U.S. sanctions, Huawei has reclaimed its position as China’s No. 1 smartphone brand as of 2025, shipping an impressive 46.7 million units. This marks a remarkable recovery aided by the company’s innovative in-house chip development, specifically the Kirin 9030 chip. However, while Huawei’s shipments saw a slight 1.9% decline compared to the previous year, it still edged out Apple in annual market share, capturing 16.4% against Apple’s 16.2% with their 46.2 million iPhones shipped.
The Competitive Landscape in China
Apple experienced a 4% growth in its shipment numbers, powered by the successful release of the iPhone 17 in late 2025, and dominated the December quarter with a market-leading 21.5% share. Meanwhile, other brands such as Vivo and Xiaomi grappled with rising manufacturing costs, dampening growth. Vivo maintained third place, shipping 46.1 million units despite these challenges.
Industry analysts like Will Wong, senior research manager at IDC, attribute Huawei’s resurgence to aggressive advancements in its in-house technology, particularly in chip design. Wong highlighted that this strategic innovation played a critical role in building Huawei’s momentum after years of sanctions affecting their overseas supply chains.
Rising Costs & Market Decline
China’s smartphone market was not without challenges overall. In 2025, total shipments fell by 0.6%, hitting 284.6 million units. The global memory chip shortage exacerbated production costs, forcing brands like Xiaomi and Honor to increase prices. Meizu even had to cancel a new handset launch in light of these challenges. IDC predicts the market will likely shrink further in 2026 under continued pressure from memory and component shortages.
Premium Strategies for High-End Brands
While budget smartphone brands struggled, premium manufacturers like Huawei and Apple weathered the storm more effectively. With their flagship devices positioned at higher price points, they successfully offset cost pressures. Huawei’s Mate 80 Pro Max, equipped with its cutting-edge Kirin 9030 chip, is a prime example of how advanced features and premium pricing can maintain profitability.
Interested in experiencing Huawei’s innovative technology? Check out the Huawei Mate 80 Pro Max, a flagship smartphone that’s setting new standards in performance and design.
What Lies Ahead
As 2026 approaches, high-end brands are likely to gain further ground. With premium features and brand loyalty, they remain well-positioned to withstand global supply chain pressures. However, budget brands face more turbulent waters as rising costs challenge their pricing strategies and market positioning.
The reshuffling of players in China’s tech landscape reflects not just competition but adaptability to lasting global challenges. Consumers in the market for advanced features and long-term value may find Huawei’s Mate 80 series an attractive choice in a rapidly evolving competitive environment.
