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Huawei beats rivals in Q2 shipments

Surge of 240 percent in foldable smartphones key driver for tech firm

By MA SI | China Daily | Updated: 2025-07-22 09:21
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Huawei Technologies Co has staged a remarkable comeback, reclaiming its leading position in terms of shipments in China's smartphone market in the second quarter, according to a latest report from market research company International Data Corp.

This achievement marks Huawei's return to the summit after a challenging six-year period, with shipments reaching 12.5 million units, capturing an 18.1 percent market share in the country, from April to June this year, IDC said.

This resurgence not only disrupts the recent dominance of rival brands, but also signifies a pivotal turnaround for Huawei, demonstrating its ability to overcome significant technology restrictions and supply chain hurdles, experts said.

Will Wong, a senior research manager with IDC's Asia/Pacific Client Devices Group, said Huawei's recovery can be attributed to its strong brand appeal and efficient shipment management.

The company's recovery is underpinned by explosive growth in specific segments. Foldable smartphone shipments surged by an impressive 240 percent year-on-year in the second quarter, while its flagship Mate series contributed over 45 percent of total shipments, highlighting a robust recovery in the premium handset market.

Furthermore, the strength of Huawei's ecosystem is evident as more than 900 million devices in China, including its own-branded products as well as devices from third-party companies, now run on its self-developed operating system HarmonyOS.

The numbers validate the success of its integrated "hardware plus software plus services" strategy, said Xiang Ligang, director-general of the Zhongguancun Modern Information Consumer Application Industry Technology Alliance, a telecom industry association.

Huawei's return is particularly notable given the broader market context. The overall Chinese smartphone market contracted by 4 percent year-on-year in the second quarter, with total shipments reaching about 69 million units, IDC said. This decline was driven primarily by weakening consumer demand and a slowdown in growth previously fueled by government subsidies.

However, Huawei managed to defy the downward trend despite the challenging environment, Xiang said, adding that the company's return to the top represents a significant reversal.

Key factors driving Huawei's resurgence include product innovation, exemplified by the successful launch of the Mate 70 series. Featuring advanced in-house chipsets, superior imaging capabilities and HarmonyOS, the Mate 70 series attracted strong consumer demand, including loyal Huawei users upgrading and even some former Apple customers, Xiang added.

The company once dominated the Chinese market with a share exceeding 40 percent, but faced severe setbacks following US sanctions, leading to significant market share losses, he said.

Huawei's relentless innovation is underpinned by its extraordinary commitment to research and development. Over the past decade, the company has invested a staggering 1.24 trillion yuan ($172.8 billion) in R&D. In 2024 alone, its R&D expenditure reached 179.7 billion yuan, representing 20.8 percent of its annual revenue. Huawei boasts a global portfolio of over 150,000 valid authorized patents, the company said.

Looking ahead, despite this significant milestone, Huawei faces an intensely competitive landscape where rivals like Apple, Xiaomi, Vivo and Oppo continue to innovate aggressively. Maintaining its technological edge and product excellence will be critical for Huawei to retain its leadership, experts said.

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