Key Takeaways
- China's smartphone shipments declined by 2.4% year-on-year in the second quarter of 2025, signaling a slowdown in the market after an initial Q1 boost.
- Huawei saw a significant 17.6% increase in sales, becoming the top vendor with an 18.1% market share, while Apple (AAPL) experienced a 1.6% drop in its China sales.
- China's foreign exchange regulator, SAFE, affirmed that the yuan exchange rate will remain stable at a reasonable and balanced level, with no "irrational" trading activities observed.
- Overseas investors have increased their net holdings of onshore equities and bonds in the second quarter, indicating confidence in China's financial markets.
China's smartphone market experienced a 2.4% year-on-year decline in shipments during the second quarter of 2025, according to data from Counterpoint Research. This downturn follows a 5% rise in the first quarter, suggesting that the initial boost from Beijing's subsidy programs may be diminishing. The broader economic context of lagging overall Chinese retail spending also contributed to the weaker performance, potentially increasing expectations for further stimulus measures from Beijing.
Despite the overall market contraction, Huawei emerged as a strong performer, recording a substantial 17.6% increase in sales and capturing an 18.1% share of the market, making it the top vendor in China. In contrast, Apple (AAPL) saw its sales in China fall by 1.6% year-on-year. The Counterpoint data highlighted sustained sales headwinds for Apple as it faces stiff competition from local players and challenges in integrating artificial intelligence into its devices. Other key players in the Chinese smartphone market include Vivo, Oppo, and Xiaomi (1810.HK).
In the financial sector, China's foreign exchange market is poised for continued stability. Li Bin, the deputy head of the State Administration of Foreign Exchange (SAFE), stated that the foreign exchange market is expected to maintain steady operation in the second half of the year. He emphasized that the yuan has been trading "basically stable at reasonable and balanced levels" so far this year, with no "irrational" trading activities observed.
Li also noted that overseas investors have increased their net holdings of onshore equities and bonds in the second quarter, reflecting a stable supply and demand dynamic within the foreign exchange market. These statements underscore China's commitment to ensuring a resilient and stable financial environment amidst global economic fluctuations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.