Xiaomi Q3 Production Drops to 41.5 Million Units; Destocking and

ZTE Mobile Phone Production Falls to 4.35 Million Units in Q3, E

According to the latest data from DataTrack, ZTE smartphone production volume in September 2025 (Q3) was 4,350 thousand units (4.35 million units), a decline of 4.4% from the previous quarter's high of 4,550 thousand units, and a decrease of 3.3% compared to the 4,500 thousand units in the same period last year. This data ends the company's recovery trend of significant increases for two consecutive quarters since bottoming out in the fourth quarter of 2024 (3.2 million units), indicating that after inventory replenishment in the first half of the year, the production rhythm has entered a seasonal adjustment. Observing detailed performance, although cumulative production in the first half of 2025 was impressive (Q1 3.8 million, Q2 4.55 million), the Q3 retracement reflects softness in end-market demand due to a lack of strong catalysts. At the same time, ZTE's released third-quarter financial report shows that while group overall revenue increased by 5.1% year-on-year, net profit attributable to the parent company declined significantly by 87.8% due to surging costs and expenses. This implies that while maintaining smartphone production scale, the company is facing severe pressure on cost control and profitability; the structural contradiction of "increasing revenue without increasing profit" may affect subsequent resource allocation for the consumer electronics business. In-depth attribution analysis reveals that the external macro environment and internal product cycles jointly caused this correction. IDC and Counterpoint data indicate that the Chinese smartphone market faced headwinds in Q3 from the fading effects of "trade-in" subsidy policies, with overall shipments showing a slight decline. For ZTE, its Nubia RedMagic series, which targets the niche esports market, is in a wait-and-see period of generational transition (the market is awaiting the RedMagic 11 series release in Q4). Consumers delaying device upgrades led to deferred orders, thereby suppressing the production schedule for the third quarter. Looking ahead, in the short term (1-2 months), with the arrival of the traditional peak season in the fourth quarter (Double 11, Double 12) and the volume ramp-up of the new RedMagic 11 series featuring the next-generation Snapdragon flagship chip, production is expected to resume growth and challenge a quarterly level of over 4.5 million units. However, in the medium term (3-6 months), attention must be paid to the erosion of gross margins by rising costs of high-end chips, as well as risks of price wars from competitors like iQOO and OnePlus in the esports market segment. If profitability cannot be improved, it may force the company to adjust pricing strategies or reduce marketing expenditures. Related Reference Sources: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFZgaAN_O2VQFtt5ZkzzMp5X1nIt7m-6I30TuEI-0cZoNTFDse-Bgfc9-2SWPXDiYM62c5zGQrgv6NTrAtkmJQSSCH6KOG7Lk5ugx8bKZQoxMgjJ__OzQVxc_iucWr3_48USOI2F834NkjXr1aU2cfyOI9S_Bu7eh5vnVMBzc1v2BGdKRBiob5NhBoKwJ_adfoDHktqUsFXHn_KpAB-VqDQ8fCJXevRYZcaSniwJjCk https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGqpD7EO_-jMw3wbtDJe8KwiqhaamOFVKHh8nwyPypRI00_VhVLP092gyvlPL0j1TgobJ1VU3pd_iTsYxfhbWPWvejc4C_f3dbRCfXroMsSfMs2QySjyA70mHsr_WKc-wH0eC5v-kCTkQeGJL2OWabeoCzNlrtns7PTOqboXzmawBVRPGzk6Sgq6VCbNxCK https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGlazIAGiM6khQVwgqdZunALS622v78H7-XnGOZ_5k4sIFoS3eyGxAEz8FPKC5X8tMXLqWN_-hN2LTIlzbDcHiJW_rfhvwP4C4Z-Dis-QXtKy0H853AioFDpYoTk8lFSTWbNEMndxq8__RgNhZ4uZxZPkL_6rNv2DcdJ8J5bCWYfDBY28Oc1xKWeu3pU-1KRnUnMErIrMxPYk4pUxtReQ