Quick Take
Huawei has snatched back the #1 smartphone position in China while Apple finally returned to growth after months of decline – a rare win-win in the world's most competitive mobile market.
The Breakdown
Huawei shipped 12.2 million smartphones in Q2, jumping 15% year-on-year to capture 18% market share and reclaim the top spot for the first time since Q1 2024. Apple, meanwhile, shipped 10.1 million units (up 4% YoY) to rank fifth – marking its first growth in China since Q4 2023.
Apple's turnaround came courtesy of strategic price cuts on the iPhone 16 series, plus increased trade-in values and discounts from Chinese e-commerce platforms. The timing couldn't be better ahead of Apple's earnings this week, where China performance will be under the microscope.
Investor Lens
This is complicated news for Apple shareholders. While any growth in China beats the alternative, ranking fifth behind local players signals the ongoing erosion of Apple's premium position. Apple shares are down 14.5% this year, with China concerns playing a major role.
For the broader smartphone ecosystem, Huawei's resurgence validates the power of homegrown alternatives. The company's aggressive product launches and rollout of HarmonyOS 5 – its Google Android rival – shows it's building a genuine ecosystem competitor, not just selling hardware.
Context Check
Huawei's comeback story continues to reshape global tech dynamics. After being kneecapped by U.S. sanctions in 2019, the company has clawed back market share through sheer domestic appeal and technological independence. This isn't just about smartphones – it's about China's broader push for tech self-reliance.
The timing is particularly significant given President Trump's renewed tariff threats and pressure on Apple to manufacture domestically. As geopolitical tensions simmer, China's consumers are increasingly choosing local champions over American brands, creating a feedback loop that could accelerate tech decoupling between the world's two largest economies.
Source: CNBC, "Huawei reclaims No. 1 smartphone spot in China — and Apple returns to growth," July 28, 2025