Smartphone application processor (AP) shipments for Chinese brands are on an upward trajectory, with an anticipated 8.7% increase year-on-year in the second quarter of 2025. This growth is attributed to brands boosting inventory levels in anticipation of the third quarter.
According to estimates, total shipments to the Chinese market are expected to rise by 4.5% quarter-on-quarter. This surge is fueled by early stocking from vendors and the upcoming releases of MediaTek’s Dimensity 9400+ and Qualcomm’s Snapdragon 8s Gen 4.
While American import tariffs have little effect on Chinese 5G AP shipments—since these smartphones aren’t extensively sold in the US—the second quarter shows stability in the Chinese market landscape, with continued growth driven by 5G APs.
Despite this positive outlook, challenges remain. Domestic demand in China is sluggish, youth unemployment remains high, and the impact of subsidy policies is diminishing, all adding pressure on 5G AP shipments. Conversely, overseas markets present a brighter picture, as early stocking and a growing number of global 5G users support an optimistic future for these shipments.
