Huawei Reclaims China’s Smartphone Crown, Apple Returns to Growth Amid Fierce Competition

Huawei has reclaimed its position as the top smartphone vendor in China for the second quarter of 2025, shipping 12.2 million units between April and June — a 15% year-on-year rise — and securing 18% of the market, according to fresh data from Canalys.

It marks Huawei’s first return to the top since Q1 2024 and highlights the company’s continued resurgence following years of setbacks due to U.S. sanctions.

Apple also staged a modest comeback in China, shipping 10.1 million iPhones during the quarter, up 4% from the same period in 2024. Although the Cupertino-based tech giant ranked fifth in overall shipments, the growth signals a reversal of its recent declines in one of its most critical markets, where it has been losing ground to Huawei and local brands like Xiaomi.

The Q2 numbers, which measure shipments rather than direct sales, arrive days ahead of Apple’s quarterly earnings release. Apple’s performance in China will be closely watched, especially as the company faces growing pressure from both competitors and political headwinds.

Huawei’s return to the top spot is a strong signal that its once-decimated smartphone division is back in full swing. The company has rolled out several competitive smartphones over the past year, aggressively pushing its high-end offerings in a bid to claw back market share from Apple. More recently, it began rolling out HarmonyOS 5 — its self-developed operating system — across its device ecosystem, part of a broader push to wean itself off U.S. technology entirely.

“This move is expected to accelerate the expansion of its independent ecosystem’s user base, while also placing greater demands on system compatibility and user experience,” Lucas Zhong, analyst at Canalys, said in a press release.

Huawei’s HarmonyOS, positioned as an alternative to Google’s Android and Apple’s iOS, has become a central pillar in the company’s strategy. The rapid rollout is seen as a key step in consolidating user loyalty and controlling its ecosystem.

Apple’s Price Strategy Pays Off — For Now

While Huawei gained the top spot, Apple’s rebound — however small — suggests that its strategy to defend its turf in China is beginning to take effect. The company made tactical price adjustments for the iPhone 16 series, slashing prices through its own channels and working with Chinese e-commerce platforms to boost affordability. Trade-in offers were also expanded, with increased valuations on older iPhones.

This shift helped Apple return to growth in China for the first time since Q4 2023, a relief for investors who have watched the company’s stock slip by about 14.5% this year, largely due to concerns over its China business and broader geopolitical tensions.

The U.S. tech giant has also faced growing pressure from Washington. President Donald Trump, who returned to office in January, has repeatedly threatened to slap tariffs on Apple products unless the company shifts iPhone production to the United States — a move industry experts say is nearly impossible without disrupting global supply chains and raising costs.

Rising Competition and the China Factor

Apple’s China dilemma runs deeper than trade threats. Local competitors are becoming more sophisticated, flooding the market with capable smartphones at more accessible price points. Huawei’s rapid recovery is a prime example, with strong domestic support and a nationalist customer base willing to favor homegrown technology over Western brands.

Analysts say Apple’s narrow growth in Q2 is encouraging, but it is far from a guarantee. The company’s long-term position in China remains fragile as Huawei and other domestic brands ramp up innovation, software integration, and ecosystem development.

The next quarters are expected to be more competitive and critical in determining whether Apple can stay relevant in China’s increasingly competitive and politically charged smartphone market.