** China's smartphone market fell 1% last year and Huawei reclaimed the top spot with 17% market share after five years, research firm Omdia says

** Vivo closely followed in second place with 46 million units shipped and a 16% market share - Omdia

** Benefiting from its strong performance in the fourth quarter, Apple AAPL.O maintained its position in the top three with an annual shipment volume of 45.9 million units

** "Apple achieved solid shipment growth by leveraging a product differentiation and upgrade strategy, supporting overall volumes while refining its portfolio," says Hayden Hou, principal analyst at Omdia

** Research firm says China's subsidy policies last year primarily accelerated existing demand rather than fostering new growth, leading to market adjustments, but brands and channel partners have since adapted their strategies, setting a stable foundation for 2026

(Reporting by Jaspreet Singh in Bengaluru)

((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))