According to a report in China Daily on February 7, 2026
BEIJING — China’s smartphone market concluded 2025 with a notable slowdown in monthly shipments, reflecting intensified competition and a broader industry transformation driven by technological upgrades and ecosystem expansion, according to the latest industry data.
Domestic mobile phone shipments in December 2025 totaled 24.5 million units, representing a sharp 29.1% year-on-year decline, the China Academy of Information and Communications Technology reported. Among these, 5G smartphones accounted for 22 million units, down 27.3% from the previous year, yet still representing 90.4% of total shipments, highlighting the continued dominance of next-generation connectivity in the Chinese market.
For the full year, China shipped 307 million mobile devices, marking a modest 2.4% decline compared with 2024. While the overall market contracted, domestic brands continued to aggressively innovate: December saw the release of 40 new models, up nearly 38% year-on-year, accounting for 97.6% of all new devices launched that month.
Industry insiders note that the surge in product launches reflects a strategy to counteract market saturation by driving differentiation and building brand ecosystems. iQOO, a leading Chinese smartphone brand, unveiled its latest flagship, the 15 Ultra, targeting the gaming segment. The company also rolled out a “Creator Incentive Program” in partnership with video platform Bilibili and collaborated with popular mobile game Honor of Kings to engage content creators and streamers.
“The market is shifting from pure volume competition to innovation-driven growth,” said an industry analyst. “Brands are leveraging software, gaming, and community engagement to cultivate user loyalty and unlock new revenue streams.”
Despite the short-term shipment decline, domestic manufacturers remain confident that continuous product iteration, coupled with deepening integration into entertainment, social, and AI-driven ecosystems, will sustain China’s leadership in global smartphone innovation.