In a recent interview, IDC reported a promising growth trajectory for China’s smartphone market in the third quarter of this year. According to their findings, smartphone shipments reached approximately 68.78 million units, marking a 3.2% increase compared to the same period last year. This growth represents the fourth consecutive quarter of expansion, indicating a strong demand propelled by a new cycle of device upgrades.

“Vivo continued to lead the market with an impressive year-on-year growth of 21.5% in shipments, maintaining an 18.6% market share,” stated IDC’s China Research Manager, Mr. Guo Tianxiang. “Their performance showcases the company’s resilience and ability to cater to consumer needs during this upgrading phase.”

Following Vivo, Apple’s iPhone 16 series, which launched in September, captured a 15.6% market share despite experiencing a slight decrease in shipments of 0.3% year-over-year, reclaiming its spot among the top five brands.

Huawei showed noteworthy performance with a robust 42% increase in shipments year-on-year, resulting in a 15.3% market share, placing it third overall. Xiaomi also reported strong growth for five consecutive quarters, climbing to the fourth position with a 14.8% market share. Honor rounded out the top five with a 14.6% share.

“Since the fourth quarter of last year, the Chinese smartphone market has steadily rebounded as pent-up demand from the past three years is gradually being released,” Mr. Guo explained. “Many consumers find themselves in a position where they must upgrade their devices, and the overall economic climate has not significantly dampened this demand for new phones.”

The average price of smartphones in China has risen from last year, driven not only by increased upstream costs but also by a willingness among consumers to invest in higher-priced models. IDC’s analysis indicates a steady increase in the proportion of high-end smartphones, with devices priced above $600 comprising 29.3% of shipments, up 3.7 percentage points year-over-year.

In addition, both IDC and another research firm, Canalys, highlighted challenges in the foldable smartphone segment. While shipments reached 2.23 million units in the last quarter—indicative of growth—this was a marked slowdown from the previous eight quarters. The market penetration for foldable phones still sits at just 3.2%.

Canalys further reinforced these trends, noting a 4% year-on-year increase in China’s smartphone market during the back-to-school season, with total shipments reaching 69.1 million units. Vivo led again with a 19% market share, while Huawei, with shipments of 10.8 million units, secured second place with a 16% share and a notable 24% increase year-on-year. Honor followed closely behind with 10.3 million units shipped, despite a 13% overall drop in its performance, highlighting the mixed success in the foldable market, which has garnered consumer interest.