China's smartphone market sees shift in 2025 amid intensified competition

China's domestic mobile phone market concluded 2025 with a notable decline in monthly shipments, while full-year figures remained relatively stable, the latest industry data showed.

The performance came as the market is undergoing a transformation characterized by intensified competition, driven by technological progress and ecosystem expansion.

According to the latest report from the China Academy of Information and Communications Technology, domestic mobile phone shipments in December 2025 reached 24.5 million units, marking a significant year-on-year decrease of 29.1 percent.

Of these, 5G smartphone shipments stood at 22 million, down 27.3 percent from the same period last year. Despite the drop, 5G devices accounted for 90.4 percent of all phones shipped during the month, underscoring the technology's dominant market position.

For the entirety of 2025, the market shipped 307 million units, a slight decrease of 2.4 percent compared to the previous year.

A closer look at December figures reveals a contraction for domestic brands. Shipments of Chinese-branded phones fell 31.0 percent year-on-year to 21.24 million units, making up 86.8 percent of the monthly total. However, in a case of relentless product iteration, domestic brands launched 40 new models in December, a substantial 37.9 percent increase year-on-year, accounting for 97.6 percent of all new models released.

Amid the broader market adjustment, industry players are betting on innovation and community building to stimulate demand. The Chinese smartphone brand iQOO, for instance, unveiled its latest product — the 15 Ultra — to target gaming enthusiasts. iQOO announced a partnership with Chinese video platform Bilibili to launch a "Creator Incentive Program". Furthermore, in collaboration with the popular game "Honor of Kings," it initiated a creator incentive plan specifically targeting streamers and content creators.