Canalys·2025-10-16 01:46Core Insights - The Chinese smartphone market is experiencing a 3% year-on-year decline in Q3 2025, indicating an ongoing adjustment phase with increasing competition among leading manufacturers [2][4] - Vivo regained the top position with 11.8 million units shipped, capturing 18% market share, followed closely by Huawei with 10.5 million units (16% market share) and Apple with 10.1 million units (15% market share) [2][6] - The overall smartphone shipments in China for Q3 2025 totaled 67.2 million units, reflecting a 3% decrease from 69.1 million units in Q3 2024 [6] Market Dynamics - The market's contraction over two consecutive quarters is showing signs of easing, suggesting that the fluctuations caused by the national subsidy program are subsiding, allowing for a return to normal market rhythms [4] - Manufacturers are strategically managing their inventory levels, preparing for the upcoming launch of flagship products and the Double 11 shopping festival [4] Product Strategy - Major manufacturers are updating their mid-range product lines, focusing on practical upgrades in response to rising component costs, with new models featuring large batteries (over 7000mAh) and enhanced durability [4] - The emphasis on battery technology and durability reflects manufacturers' responses to consumer demands for reliability and longevity in devices [4] Future Outlook - Despite the current market decline, Omdia forecasts a moderate growth in smartphone shipments for the entire year of 2025, supported by local subsidies [6] - Domestic brands are differentiating their products through design, battery life, and camera capabilities, while also enhancing AI functionalities to attract local consumers, who are notably inclined towards AI technologies [6]