According to the most recent data from Goldman Sachs, smartphone shipments in China took a hit in May, dropping by 21% year-over-year to 23 million units. Although there was a slight uptick of 1% in shipments compared to the previous month, the overall numbers continue to be under pressure due to a high base effect from the strong shipments seen in 2024. Cumulatively, smartphone shipments in China are down by 5% year-to-date through May.
Key Points About China’s Smartphone Market in May:
-
Smartphone shipments in China declined by 21% year-over-year to 23 million units in May, compared to a 2% year-over-year decrease in April 2025, according to MIIT.
-
The number of new smartphone models launched in China also saw a decrease, dropping by 27% year-over-year to 27 models in May 2025, in contrast to a 14% year-over-year increase to 32 models in April 2025, as reported by MIIT.
The analysts at Goldman Sachs, led by Allen Chang, noted that the number of cameras per phone peaked at 3.8 in 2022 but decreased to 3.3/3.1 in 2024/2025 year-to-date. However, the penetration of 20MPx+ cameras increased to 52%/51% in 2024/2025 year-to-date, reflecting a trend of camera specification upgrades in China smartphones.
Despite the overall decline in smartphone shipments, the 5G segment showed relative strength with a 7% increase in shipments from April to 21 million units, representing an 89% market penetration rate. However, the number of new 5G models launched decreased by 52% year-over-year to just 13.
Key Points About China’s 5G Phone Market in May:
-
5G phone shipments in China reached 21 million units in May, showing a 7% month-over-month increase but a 17% year-over-year decrease, with a penetration rate of 89%, as per MIIT.
-
The number of new 5G smartphone models launched in China dropped by 52% year-over-year to 13 models in May 2025, compared to a 14% year-over-year decline to 19 models in April 2025, according to MIIT.
Visualizing China’s Smartphone Market Through Charts:
Insights Into the Smartphone Pipeline:
Looking ahead, Chang predicts shipment declines of 4% in Q2 and 2% in Q3, but emphasizes the ongoing upgrades in hardware specifications and a shift towards premium models in the market.
The analysts recommend a “Buy” rating for Hon Hai, AAC, Largan, Luxshare, SZS, Fositek, BYDE, Transsion, Will Semi, MediaTek, and TSMC.
Loading…