China’s Smartphone Market Slips 3% as vivo Reclaims the Top Spot

Mainland China’s smartphone market has recorded another quarter of decline, slipping 3% year-on-year according to new research from Omdia. The drop marks the second consecutive contraction for the world’s largest smartphone market, but analysts say the downturn is beginning to stabilise.

vivo has regained the top position with an 18% market share, shipping 11.8 million units during the quarter. Huawei followed closely in second with 10.5 million units, while Apple climbed back into the top three with 10.1 million. Xiaomi and OPPO rounded out the top five, each hovering around the 10 million mark — evidence that the competition at the top is now tighter than ever.

A Market Finding Its Balance
“Although the market has contracted for two consecutive quarters, the narrowing decline indicates that the shipment fluctuations triggered by the government subsidy program at the beginning of the year are coming to an end,” said Lucas Zhong, Analyst at Omdia.

According to Zhong, vendors have shifted to a more cautious shipment pace, allowing them to maintain healthier inventory levels and avoid the overstock issues that plagued earlier quarters. He expects activity to pick up again in Q4, driven by new flagship launches, the Double 11 shopping festival, and another potential round of subsidies.

Huawei Bets on HarmonyOS
While Huawei continues to rebuild momentum, its biggest shift is software. Since the launch of the Pura X, the company has preinstalled HarmonyOS 5.0 across most of its new devices. Zhong notes that while the transition poses short-term challenges for optimization and user experience, it’s a long-term move to strengthen Huawei’s ecosystem and reduce dependence on Android.

“Consistent execution will likely strengthen Huawei’s ecosystem moat, particularly in an increasingly saturated market,” he added.

Durability Becomes the New Differentiator
Vendors are also fighting for differentiation in the mid-range and entry-level segments. New releases like the HONOR X70, Redmi Note 15 Pro, vivo Y500, and OPPO A6 are all built around the same consumer priorities: bigger batteries, better durability, and improved protection.
Zhong highlights that most of these models now feature 7000mAh or larger batteries, combined with enhanced water, dust, and drop resistance — a response to rising component prices and shifting consumer expectations.

AI Features Lead the Next Wave
According to Hayden Hou, Principal Analyst at Omdia, 2025 is still on track for modest overall growth thanks to continued government support and more strategic product refreshes. “Local vendors are pursuing differentiation through design, battery capacity, and camera performance, while expanding AI-driven features and use cases to enhance user experience,” he said.
Hou added that Chinese consumers remain among the most receptive in the world to AI-capable smartphones, and that innovation within China continues to shape how domestic brands approach their global expansion strategies.

Looking Ahead
Despite economic headwinds, Omdia believes the Chinese smartphone sector is on a path to healthier growth, with inventory discipline, targeted innovation, and renewed consumer confidence expected to lift the market in the coming quarters.

For global vendors, China’s Q3 results are a reminder that recovery in the smartphone industry isn’t linear — but it is happening.