Apple's China sales down 1.6% y/y while Huawei up 17.6% y/y in Q2, says Counterpoint

Apple's China sales down 1.6% y/y while Huawei up 17.6% y/y in Q2, says Counterpoint

In the second quarter of 2025, Apple experienced a 1.6% year-over-year decline in its China smartphone sales, according to Counterpoint Research. This drop was offset by robust double-digit growth in emerging markets, allowing Apple to maintain its second position in the global smartphone market [1]. Meanwhile, Huawei saw a significant 17.6% year-over-year increase in its China smartphone sales, reclaiming the top spot in the country's market [2].

Apple's performance in China was affected by macroeconomic headwinds and intensifying local competition, despite topping sales during the 618 online shopping festival. The brand's year-over-year growth in emerging markets helped offset the decline in China, contributing to a 1.5% global growth in smartphone shipments [1].

Huawei's resurgence is attributed to its focus on premium smartphones and heavy investment in domestic innovation. The company's latest flagship models, including the Mate 70 and Pura 80 series, have attracted strong consumer interest, particularly among buyers seeking high-end, Chinese-made devices [2].

The overall smartphone market in China is slowing down, with total shipments falling by 4% year-over-year in Q2 2025. Weak consumer confidence and the expiration of government subsidy programs are cited as factors contributing to the market slowdown [2].

Nvidia, an AI chip manufacturer, is expected to soon resume shipping its H20 artificial intelligence (AI) chips to China, following an export halt caused by stricter controls. This development is significant as it will allow Nvidia to recoup losses from halted sales and maintain its position in the AI chip market [3].

References:
[1] https://telecomlead.com/smart-phone/apples-q2-2025-smartphone-market-performance-insights-from-idc-and-canalys-121706
[2] https://thetechportal.com/2025/07/16/huawei-tops-chinas-smartphone-market-after-4-years-secures-18-1-market-share/
[3] https://www.caixinglobal.com/2025-07-17/nvidia-will-soon-be-allowed-to-resume-sales-of-ai-chips-to-china-ceo-says-102342276.html