China’s smartphone market contracted in 2025, as the momentum from government consumption subsidies dissipated in the second half, reports Caixin. The downturn underscores the fragile state of consumer electronics demand in the world’s largest smartphone market and signals a challenging year ahead, with memory costs set to climb steeply.
Smartphone shipments in the China market fell 0.6% year-on-year to about 284 million units in 2025, according to data from research firm IDC. Subsidies for consumer electronics spurred growth in the first half, but the effect waned as funding ran dry and demand was pulled forward. Counterpoint Research reported a similar pattern, noting a 1.6% drop in the fourth quarter and a 0.6% contraction for the full year. Rising memory prices also weighed on shipments, prompting vendors to cut back on low-end inventory.