China's Smartphone Market Contracts in Q2: Xiaomi Leads the Way

China's smartphone market contracted in Q2, with Xiaomi Corporation's sales declining 23% YoY. The company's Smartphone segment saw a 24% decline in sales, while the IoT and Lifestyle product segment's sales fell 13%. The Internet service segment saw a 5% increase in sales. Xiaomi's revenue declined 1.4% YoY to $14.3bn in Q2.

China's smartphone market contracted in the second quarter, with Xiaomi Corporation's sales declining 23% year-over-year (YoY). The company's Smartphone segment saw a 24% decline in sales, while the Internet of Things (IoT) and Lifestyle product segment's sales fell 13%. Notably, Xiaomi's Internet service segment saw a 5% increase in sales. Overall, Xiaomi's revenue declined 1.4% YoY to $14.3 billion in Q2 [3].

The broader economic environment in China presents ongoing challenges, with consumer confidence remaining subdued. Arthur Guo, senior research analyst at IDC, noted that a significant uplift in smartphone demand is unlikely in the immediate term, and the market will navigate a more complex landscape in the second half of the year [1].

Globally, smartphone shipments increased slightly by 1.0% year-over-year to 295.2 million units in the second quarter of 2025, according to IDC. Samsung maintained its position as the global market leader, shipping 58 million units, up 7.9% compared to the same period last year. Apple ranked second with shipments of 46.4 million units, while Xiaomi followed in third place with 42.5 million units shipped [2].

Xiaomi's revenue from IoT and lifestyle products in the second quarter of 2024 amounted to 26.8 billion yuan, an increase compared to the previous quarter's revenue of 20.4 billion yuan [3].

References:
[1] https://finance.yahoo.com/news/chinas-q2-smartphone-shipments-dropped-101822082.html
[2] https://www.investing.com/news/company-news/samsung-leads-global-smartphone-market-with-197-share-in-q2-93CH-4134909
[3] https://www.statista.com/statistics/967543/worldwide-xiaomi-iot-lifestyle-products-revenue/