It's a first! Domestic smartphone brands take all top five spots

China's smartphone market sales grew 10 percent year on year in the second quarter this year, with domestic brands taking the top five spots, thanks to the 618 marketing campaign and artificial intelligence upgrade, research firm Canalys said.

In the quarter, Apple was phased out of the top five rankings for the first time in recent years. It announced a delay in Apple Intelligence releases, with experts suggesting that localization of these key artificial intelligence services in China will be crucial for the American giant's performance in the domestic market.

China's smartphone sales hit 70 million units in the quarter, with a 10-percent growth from a year ago. Sales rebounded during the "618" e-commerce festival in June. The top five brands were: Vivo, OPPO, Honor, Huawei and Xiaomi, according to Canalys.

"It is the first quarter in history that domestic vendors have dominated all the top five positions," said Canalys Research analyst Lucas Zhong.

"Chinese vendors' strategies for high-end products and their deep collaboration with local supply chains are starting to pay off in hardware and software features."

Apple ranked No. 6 in the domestic market in the quarter.

Domestic brands are investing in AI infrastructure, developing in-house models, and creating AI applications as key competitive advantages to disrupt the high-end segment.

Nubia, backed by China's ZTE, released its own AI model and new Z60 models last week, with AI offerings integrated with screen, Snapdragon processors, image and satellite communications.

Nubia's product general manager Zhang Lei positions the AI Plus as the brand's upgraded strategy, to bring AI for work improvement and new lifestyle for young consumers.