Smartphone shipments in China dropped by 21.8% year on year in May, totaling 23.7 million units, according to the China Academy of Information and Communications Technology (CAICT).

This marks the largest monthly decline in 2025 so far.

The drop follows a growth period from February to April, when shipments had increased.

In February, shipments rose by 38% to 19.7 million units. January, however, saw a 14.3% decline to 27.2 million units.

Foreign brands, including Apple, recorded a smaller decline of 9.7% in May. Domestic companies like Huawei and Xiaomi experienced a sharper drop, with a combined shipment decrease of 24.2%.

Chinese brands also launched fewer new models in May, with 36 in total, down 25% from last year.

Still, from January to May 2025, local brands introduced 192 new models, reflecting a 9.7% increase.

The Shenzhen Mobile Communications Association attributed the May decline to challenges in launching new domestic models.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s smartphone market demonstrates cyclical recovery patterns despite current decline

The dramatic 21.8% drop in May follows a historical pattern in China’s smartphone market that has been observed since its first-ever decline in 2017, when shipments fell by 4% after eight consecutive years of growth 1.

This market has experienced significant volatility over the past decade, reaching peak shipments of approximately 490 million units in 2016 before beginning a downward trajectory to around 300 million units by 2020 2.

Previous downturns have often been followed by recovery periods, as evidenced by the growth period from February to April 2023 mentioned in the article, suggesting the current decline may be part of a larger cycle rather than a permanent trend.

Historical data shows that market rebounds are often driven by new technology adoption cycles, with the introduction of 5G devices in late 2019 temporarily revitalizing shipments after previous slumps 1.

The current situation reflects broader patterns of market maturation, where high smartphone penetration (nearly 60% of China’s population) naturally leads to more moderate growth and occasional contractions as the replacement market becomes dominant.