(Bloomberg) — Huawei Technologies Co. took the top spot in China’s smartphone market for the first time in more than four years, a comeback fueled by new designs and software that appealed to users in a slowing market.
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The hardware giant held on to a roughly 18% share of the market in the June quarter, while other leading competitors like Vivo and Oppo slumped, according to IDC data. The Shenzhen device maker showed greater resilience than rivals as overall shipments in China fell 4% to 69 million units.
Huawei’s recovery follows years of US export restrictions, which spurred the company to develop its own hardware and technologies, including artificial intelligence chips. In 2024, Huawei launched several smartphones powered by domestically designed and manufactured semiconductors, including the world’s first commercially available device with two folds. It’s also added smartphones with its own operating system, transitioning away from Google’s Android.
IDC researchers saw the first decline in China shipments after six consecutive quarters of growth, attributing that to diminishing help from government subsidies.
“Despite the recent US-China trade truce, the broader economic environment presents ongoing challenges, with consumer confidence remaining subdued,” said Arthur Guo, senior research analyst at IDC China. “A significant uplift in smartphone demand is unlikely in the immediate term.”
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