(Yicai) April 16 -- China's smartphone shipments widened by 3.3 percent in the first quarter from a year earlier, surpassing global growth of 1.5 percent, driven by strengthening domestic brands such as Xiaomi and Huawei amid shrinking iPhone shipments, according to data from IDC.

Nationwide smartphone shipments reached 71.6 million units, marking the sixth straight quarter of growth, the global market intelligence firm revealed in a recent report.

In the first three months of the year, Xiaomi led the market with shipments surging nearly 40 percent year-on-year to 13.3 million units. Huawei Technologies followed with a 10 percent increase to 12.9 million units. Oppo saw a 3.3 percent rise to 11.2 million units, while Vivo ranked fourth with a 2.3 percent gain, shipping 10.3 million units.

Apple was the only brand among the top five to report a decline, with shipments dropping 9 percent to 9.8 million units. IDC attributed the decrease to the exclusion of Apple’s Pro models from a Chinese government subsidy program, which targets products priced below CNY6,000 (USD820).

Rising Xiaomi and Apple's AI Lag

Xiaomi is now the number one smartphone brand in China, Lei Jun, founder and chairman of the Beijing-based brand, said yesterday. In March alone, buyers activated over 3.2 million new Xiaomi devices, a 17 percent year-on-year increase, bringing the company’s market share to 18 percent, he added.

Apple Chief Executive Tim Cook cited two factors for the company's revenue decline in China in the first quarter: the absence of Apple Intelligence, its proprietary artificial intelligence system, and adjustments to channel inventory.

Recent reports suggest that Apple is working with Baidu and Alibaba Group Holding to bring AI features to Chinese iPhones by June, with the earliest expected launch of Apple Intelligence in the Chinese market coming with the iOS 18.5 update.

Global Challenges

Looking ahead, IDC warned that despite potential adjustments to China’s national subsidy program to make it more consumer-friendly, the domestic smartphone market will continue to face pressure from international geopolitical tensions and macroeconomic challenges.

In the first three months of this year, global smartphone shipments totaled 304.9 million units, per IDC. Samsung Group retained its top position with 60.2 million units, followed by Apple with 52.6 million units. Chinese brands Xiaomi, Oppo, and Vivo ranked third to fifth, shipping 41.8 million, 23.5 million, and 22.7 million units, respectively.

Tariff threats prompted strategic inventory stockpiling. "Faced with heightened geopolitical uncertainty and the looming threat of substantial US tariff hikes on goods imported from China, vendors strategically accelerated production schedules and pulled forward significant shipment volumes, particularly into the critical US market," said Francisco Jeronimo, vice president at IDC, covering device trends in Europe.

Editor: Emmi Laine