sandalwood

Abstract: The global high-end smartphone market is entering a new growth cycle. iOS retains influence in the ultra-premium segment, HarmonyOS is expanding rapidly in the premium tier, and Android continues steady progress in the mid-to-high-end. OEMs are reinforcing premium perception through clearer price tiers and strategic product anchoring. Form factor evolution has become a key differentiator—folding designs, ultra-thin profiles, materials, and module language are crystallizing into transferable brand signatures. The iPhone 17 series (including Pro Max and Air) continues Apple’s narrative of "lightweight sophistication" and its imaging platform strategy. Meanwhile, services are emerging as a second growth engine, with Android and HarmonyOS leveraging app ecosystems and distributed capabilities to enable multi-device experiences.In overseas markets, Chinese brands are steadily gaining premium share across multiple regions. High-end competition is shifting from "spec comparisons" to a broader contest of pricing power and trust-building.

China’s High-End Smartphone Market Grows Steadily,
4000–6000 RMB Segment Emerges as Growth Engine

In 2025, China’s high-end smartphone market (above 4000 RMB) continues steady growth. According to Sandalwood’s China e-commerce data, from January to July, premium models achieved 23.48 million units in sales volume, up 15% year-on-year, with sales value reaching 1.659 trillion RMB, up 11%.

By Operating System:

• Apple iOS remained stable, with sales volume and value up 8% and 6% respectively.
• Huawei HarmonyOS maintained rapid expansion, surging 26% in volume and 16% in value.
• Android performed strongest, growing 33% in volume and 31% in value.

By Price Segment:
From January to July 2025, the 4000–6000 RMB segment became the key growth driver, with sales volume up 67% YoY—fueled by increased high-end model availability and government subsidy programs. Meanwhile, the share of devices below 4000 RMB and above 6000 RMB declined slightly year-on-year.

Within the 4000–6000 RMB range, the 5000–6000 RMB sub-segment saw the strongest growth, up 96% YoY, significantly outpacing the 4000–5000 RMB segment, which grew 40%.

In the 5000–6000 RMB tier, HarmonyOS stood out most, with volume soaring 329% YoY, driven by the success of the Mate 70 and Pura 70 series. Its market share in this segment has risen significantly. Android and iOS performance in the 4000–6000 RMB range remained broadly in line with overall market trends.

Tiered Competition in Premium Market:
Android, HarmonyOS, and iOS Compete by Segment

In contrast, growth in the 6000–7000 RMB segment slowed slightly in 2025, with iOS experiencing a notable decline. This price range is now seeing intensified competition from HarmonyOS and Android—becoming a key battleground for Android’s further premium push in recent years. From January to July, HarmonyOS and Android achieved steady volume growth of 10% and 9% YoY, respectively, with Huawei and Xiaomi standing out in this tier.

In the 7000–10,000 RMB segment, iOS remains dominant, with sales up 7% YoY, while Android also posted solid growth.

In the above 10,000 RMB tier, HarmonyOS surged 33% YoY, while iOS held a relatively defensive position. Huawei leads this ultra-premium range with its foldable devices: horizontal foldables (over 10,000 RMB) are now dominated by Huawei, and its dual- and triple-fold models have firmly established leadership. The newly launched Mate XTs continues to maintain its edge in the ultra-high-end segment.

The newly launched iPhone 17 Pro Max features a one-piece aluminum body and a horizontal "Camera Plateau" spanning the back. All three rear cameras are upgraded to 48MP, with a larger telephoto sensor enabling up to 8× optical-quality zoom. It is powered by the A19 Pro (3nm) chip and includes Apple’s self-developed N1 wireless chip and C1X 5G modem, maintaining Apple’s competitive edge in the ultra-premium market.

Pricing reflects not only market share competition but also serves as a core brand asset. Premium pricing must remain stable and disciplined, with a clear tiered structure that ensures each level offers distinct and rational value.

From Foldables to Ultra-Thin:

Establishing Highly Recognizable Visuals as Critical in Premium Market Competition

At the hardware level, product form has become a critical dimension of premium competition. Design is one of the most visible and hard-to-replicate differentiators. Highly recognizable elements—such as silhouette, module layout, and material texture—evolve into unique brand assets through repeated exposure and cross-category reuse, reducing consumer search costs and strengthening brand recall.

The newly launched iPhone 17 Air, with its ultra-slim profile and aerospace-grade titanium, creates a strong visual and experiential signature, reinforcing its "lightweight premium" positioning.

• The MacBook Air first established this narrative in 2008 with its iconic "envelope launch,"
• The iPad Air extended it to tablets,
• And in 2025, the iPhone 17 Air brings it to smartphones, forming a unified "Mac–iPad–iPhone" tri-platform naming strategy.

According to Sandalwood’s China e-commerce data, from January to July 2025, online foldable phone sales exceeded 1.08 million units, up 24% YoY. Horizontal foldables drove growth, while vertical foldables remained stable. In the Android and HarmonyOS markets above 5,000 RMB, foldables now account for 30% of sales, reflecting steady adoption.

Huawei’s innovation path in flagship hardware clearly reflects its strategy of continuously redefining the boundaries of smartphones:
• Mate X (2019) launched the folding era with an outward fold,
• Mate X2 (2021) improved durability with an inward-folding “water-drop” hinge,
• P50 Pocket (2021) introduced a compact foldable, blending fashion and portability,
• Mate X3/X5 (2023–2024) achieved breakthroughs in thinness, waterproofing, and reliability,
• Mate XT pioneered the triple-fold design with a 10.2-inch unfolded display, bringing tablet-like experience into the pocket,
• Pura X (2025) introduced a 16:10 widescreen foldable for immersive reading and video.

Android:
• Xiaomi focuses on experimental extremes—from the true full-screen MIX series and wraparound/transparent OLED to CyberDog and SU7—pushing form factors to the edge.
• Honor emphasizes slimness and style in foldables: Magic V2 achieves near-slate-like feel, while V Purse reimagines the foldable as a “wearable handbag.”
• OPPO excels in design and hinge engineering: the Find N series reduces creases with water-drop hinges, N2 Flip redefines compact foldables with a large outer screen, and it explores future interfaces via scrollable displays and AR glasses.
• vivo specializes in imaging and interaction—first to launch under-display fingerprint, introduced micro-gimbal stabilization, and uses its APEX concept series to showcase hole-free designs and under-display cameras, while the X Fold series brings lightweight, business-focused foldables to mass production.

Notably, Apple is expected to enter the foldable market in 2026, signaling even fiercer competition in premium device form factors ahead.

Services as the Second Growth Curve:
Strong Customer Bonds as the Key Moat in Premium Markets

At the software level, Apple’s services have become a core growth driver.
Over the past seven quarters, service revenue has risen from 23.1Bto23.1Bto27.4B, increasing its share of Apple’s total revenue from 19% to nearly 30%.

The iPhone serves as the entry point, building a massive user base, while services like iCloud, App Store, Apple Music, AppleCare, and Apple Pay convert one-time hardware sales into recurring, relationship-based revenue through subscriptions and ongoing usage.

This not only increases customer lifetime value but also stabilizes Apple’s cash flow.

In contrast, Android OEMs focus on cultivating user habits via app stores, memberships, and game centers, leveraging super-apps like WeChat and Alipay to build strong consumer-side engagement, while advancing “connected everything” to form multi-device ecosystems.

HarmonyOS emphasizes system-level atomic services and intelligent assistants, using distributed architecture to integrate smartphones, in-car systems, tablets, and more into a “super system.” It further builds an ecosystem moat through B2B applications in government, automotive, and industrial IoT.

For enterprises, value creation and capture must occur across multiple touchpoints. Services represent the potential to extend value beyond hardware.

From "Cost-Performance" to "Value-Based Pricing":
The Overseas Premium Market Enters a New Phase

At the revenue level, Apple’s growth remains primarily driven by developed markets:
• The Americas show steady growth of 3.9%–9.3%;
• Europe maintains 8%–11% across most quarters;
• Japan grows rapidly at 13%–16%.

These markets remain Apple’s core revenue base. Other Asia-Pacific regions saw peaks of 13.5%–20.1%, while emerging markets are also expanding quickly.

Meanwhile, Chinese smartphone brands are accelerating their penetration into overseas premium segments.

According to Sandalwood’s global e-commerce data, from January to July 2025, Chinese brands surpassed 10% share in the premium market across Latin America, North America, MEA, East Asia, Western Europe, and Northeastern Europe. Shares reached 29% in Northeastern Europe, 17% in Western Europe, and 18% in East Asia—demonstrating not only scale but meaningful presence in high-end segments, reflecting rising global competitiveness.

In today’s globalized landscape, premium tech competition is no longer about specs alone—it’s a contest of pricing power and trust-building. To truly achieve “premium globalization,” companies must systematically integrate technology, pricing, organization, ecosystem, and risk management, treating brand-building as a long-term compounding process.

Conclusion:
The Chinese model, built on deep accumulation, is seizing the wave of globalization and digitalization with accelerating global impact. Behind global e-commerce growth lies the sustained export of Chinese experience. What we see is not just the rise of Chinese e-commerce, but its ability to share opportunities and co-create the future with the world. The future of global retail will be defined by China-driven digitization—more efficient, inclusive, and resilient. This marks not only the arrival of the “China E-commerce Era,” but also a new, shared stage of win-win development for global e-commerce.