China's Foreign-Branded Phone Sales Plummet 31.3% in June.

Foreign-branded phone sales in China declined 31.3% YoY in June to 1.971 million units, according to data from the China Academy of Information and Communications Technology. Overall phone sales in China fell 9.3% to 22.598 million units in June. The decline in foreign-branded phone sales is a significant drop, and it could have implications for companies like Apple.

China's Xiaomi Corp (1810.HK) reported a robust second-quarter performance, with revenue jumping 30.5% to 116 billion yuan ($16.16 billion) [1]. This growth was driven by strong orders for the new YU7 electric SUV and a 75.4% year-on-year increase in adjusted net profit to 10.8 billion yuan [1]. Xiaomi's stock has risen 52% so far this year, closing down 1.2% at 52.4 Hong Kong dollars [1].

In addition to its strong financial performance, Xiaomi regained its top spot in the Southeast Asian smartphone market for the first time in four years. The company's smartphone shipments in the region jumped 8% year-on-year to 4.7 million units in the second quarter, capturing 19% of the market share [2]. This growth was driven by the expansion of its sales channels and the success of its budget and premium handsets, including the Poco brand and the 15 series [2].

Meanwhile, overall phone sales in China fell 9.3% to 22.598 million units in June, with foreign-branded phone sales declining 31.3% year-on-year to 1.971 million units [3]. This significant drop in foreign-branded phone sales could have implications for companies like Apple, which traditionally had a strong presence in the Chinese market. However, Xiaomi's strong performance and market gains suggest that Chinese consumers are increasingly turning to domestic brands for their smartphone needs.

Looking ahead, smartphone shipments in China are expected to decrease by 6.8% quarter-over-quarter in the third quarter of 2025 [3]. Despite this expected decline, Xiaomi's strong second-quarter results and market gains position the company well to continue its growth trajectory.

References:
[1] Reuters. "Xiaomi's second-quarter revenue up 30.5% boosted by EV orders." August 19, 2025. [https://www.reuters.com/business/autos-transportation/xiaomis-second-quarter-revenue-up-305-boosted-by-ev-orders-2025-08-19/](https://www.reuters.com/business/autos-transportation/xiaomis-second-quarter-revenue-up-305-boosted-by-ev-orders-2025-08-19/)
[2] SCMP. "Xiaomi regains top spot in Southeast Asia's smartphone market." August 20, 2025. [https://www.scmp.com/tech/tech-trends/article/3321719/xiaomi-regains-top-spot-southeast-asias-smartphone-market-first-time-4-years](https://www.scmp.com/tech/tech-trends/article/3321719/xiaomi-regains-top-spot-southeast-asias-smartphone-market-first-time-4-years)
[3] Digitimes. "2025 shipments in China's smartphone market: smartphone sales." August 18, 2025. [https://www.digitimes.com/news/a20250818RS400/2025-shipments-china-smartphone-market-smartphone-sales.html?chid=2](https://www.digitimes.com/news/a20250818RS400/2025-shipments-china-smartphone-market-smartphone-sales.html?chid=2)