Core Insights - The Chinese smartphone market experienced a "first rise, then fall" trend in the first half of 2025, driven by short-term effects of the "national subsidy" policy, but is now facing challenges due to inventory adjustments and a competitive environment [1][2][3] - The long-term health of the industry relies on continuous product innovation and overall macroeconomic growth, rather than temporary subsidies [1][2] - Realme is focusing on product differentiation and appealing to younger consumers while expanding its offline presence through service and experience stores [3][4] Market Performance - The "national subsidy" policy initially stimulated market growth, particularly benefiting high-end product sales, but has since tightened, leading to a competitive landscape in a mature market [2][3] - Realme has seen significant growth in the Latin American market, with over 200% year-on-year growth in Brazil, indicating potential for expansion in emerging markets [3][4] Industry Challenges - The smartphone industry is facing rising component costs, particularly in mid-range memory and battery materials, which are impacting pricing strategies for mid-range devices [5][6] - The transition from DDR4 to DDR5 memory technology is a key focus for the industry, with challenges related to price fluctuations and the need for gradual adoption of new technologies [6][7] - The supply of LPDDR4X is expected to decrease significantly by 2025-2026, leading to increased prices, while LPDDR5X supply remains healthy, indicating a shift in market dynamics [7]