Huawei has returned to the number one position in China's smartphone market in 2025, according to the latest report from the market research company International Data Corp.

This marks a significant shift in the competitive landscape of the world's largest smartphone market as Huawei managed to overcome the challenges from the US government’s restrictions to revive its smartphone business.

The report, released on Wednesday, outlined the annual shipment rankings for the Chinese smartphone market. Huawei secured the top position with shipments reaching 46.7 million units, capturing a 16.4 percent market share. It was followed closely by Apple, which shipped 46.2 million units, accounting for 16.2 percent of the market.

Vivo, Xiaomi, and Oppo rounded out the top five. Notably, Honor dropped out of the top-five rankings for the year.

Overall, the Chinese smartphone market saw a slight contraction in 2025, with total shipments declining by 0.6 percent year-on-year to approximately 285 million units.

The report highlights Huawei's successful re-emergence as a major force, demonstrating its resilient brand appeal and product strength among Chinese consumers. The intensified competition at the top, with Huawei and Apple separated by a mere half a percentage point in market share, sets the stage for a fierce battle in the coming year.

Despite the reshuffle among leading brands, the market faces significant headwinds. IDC analysts point to the persistent pressure from rising component costs, particularly for memory storage, which is expected to see substantial price increases. This will further squeeze profit margins for all manufacturers.

Looking ahead, industry experts anticipate a more pronounced decline in China's smartphone shipments for 2026, driven by these escalating cost pressures, market saturation, and extended replacement cycles.