China’s smartphone shipments fell by 2.4% in Q2, with Huawei increasing by 17.6% and Apple decreasing by 1.6%
by VT Markets
/
Jul 22, 2025
China’s smartphone shipments fell by 2.4% in the second quarter, continuing a downward trend in the market.
Apple’s sales in China dropped by 1.6% compared to last year. In contrast, Huawei’s sales surged by 17.6% during the same period.
Consumer Preferences And Competition
These statistics show a change in what consumers want and highlight the competition in China. While some brands face challenges, others find new opportunities to grow.
The smartphone market in China is constantly changing. Brands will likely adjust their strategies to meet the latest trends and consumer needs.
With the overall decline in smartphone sales in China, premium brands face a tough environment. Apple’s slight sales drop indicates a potential weakness in its second-largest market. This trend may suggest looking at bearish positions, like buying put options on Apple stock, to protect against further declines.
Volatility And Market Dynamics
Huawei’s impressive sales growth shows it is effectively gaining market share from its American competitor. Recent data reveals that Huawei’s market share reached 17% in the second quarter, making it a major player. We expect competition to increase with the anticipated September launch of its flagship device.
This timing could lead to heightened volatility, as the new iPhone will launch around the same period. The direct rivalry between these two significant product releases could result in notable price fluctuations for their stocks. This scenario suggests that strategies benefiting from large movements, such as long straddles, might be a good approach.
In the past, we’ve seen implied volatility for Apple’s stock increase before its fall hardware launches. Current data also indicates that China’s consumer confidence index has struggled to stay above the neutral 100-point mark, raising concerns about spending on high-end electronics. Thus, we predict a greater spike in volatility this year compared to previous launch cycles.
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by VT Markets
Jul 22, 2025
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