Core Insights - The Chinese smartphone market is experiencing a mild recovery in Q2 2025, driven primarily by Huawei and Apple [1][3] - Huawei is expected to achieve the highest growth among major brands and reclaim the top position in the Chinese market, while Apple continues to lead the high-end market with the iPhone 16 series [1][4] Market Dynamics - The current smartphone market in China is characterized by a mix of inventory competition and technological iteration, with several factors such as slow consumer confidence and prolonged product innovation cycles putting pressure on the market [3] - Leading manufacturers are activating replacement demand through brand strategies, technological upgrades, and price adjustments [3] Huawei's Performance - Huawei's strong rebound is notable, particularly since its return to the 5G smartphone market, launching new Mate and Pura series products that leverage self-developed chips and the HarmonyOS ecosystem for competitive differentiation [3] - The company experienced a sales peak in May, aided by government smartphone subsidy policies and its own promotional activities, which stimulated a wave of user upgrades [3] - Huawei's core user loyalty remains high, with users replacing old devices with new models, indicating a recovery of market share lost due to previous supply chain constraints [3] Apple's Strategy - Apple is steadily advancing in the high-end market, with the iPhone 16 Pro and Pro Max performing exceptionally well, particularly following a timely price adjustment in May [4] - This price adjustment coincided with the 618 shopping festival, allowing Apple to secure the top sales position during this period, with three iPhone models ranking among the bestsellers [4] Overall Market Outlook - Despite the strong performances of Huawei and Apple, overall consumer confidence remains slow to recover, with actual sales during the 618 festival showing no year-on-year growth [4] - Analysts suggest that the sales performance in Q2 was partially driven by government subsidy policies, which may taper off in the second half of the year, introducing uncertainty into market growth [4] - The competitive landscape is shifting from price wars to a focus on user value and ecosystem capabilities as the market evolves [4]