China's smartphone shipments fell in 2025 as subsidies faded, with a 0.6% year-on-year drop, signaling challenges for the industry ahead.
China's smartphone shipments fell in 2025 as government consumption subsidies lost momentum in the second half, reports Caixin.
Research firm IDC stated that shipments dropped 0.6 percent year-on-year to about 284 million units. Subsidies boosted sales in the first half, but demand was pulled forward, and funding later ran out.
Counterpoint Research reported a similar trend, noting a 1.6 percent decline in the fourth quarter and a 0.6 percent contraction for the full year. Analysts indicated that rising memory prices also pressured vendors.
The higher component costs prompted manufacturers to cut back on low-end inventory, underscoring fragile consumer demand in the world's largest smartphone market and signaling a difficult year ahead.
