Achieving continuous and high-precision positioning services via smartphone under a Global Navigation Satellite System (GNSS)-degraded environment is urgently demanded by the mass market. In 2018, Xiaomi launched the world’s first dual-frequency GNSS smartphone, Xiaomi Mi 8. The newly added L5/E5 signals are more precise and less prone to distortions from multipath reflections. This paper discusses the characteristics of raw dual-frequency GNSS observations from Xiaomi Mi 8 in urban environments; they are characterized by high pseudorange noise and frequent signal interruption. The traditional dual-frequency ionosphere-free combination is not suitable for Xiaomi Mi 8 raw GNSS data processing, since the noise of the combined measurements is much larger than the influence of the ionospheric delay. Therefore, in order to reasonably utilize the high precision carrier phase observations, a time differenced positioning filter is presented in this paper to deliver continuous and smooth navigation results in urban environments. The filter first estimates the inter-epoch position variation (IEPV) with time differenced uncombined L1/E1 and L5/E5 carrier phase observations and constructs the state equation with IEPV to accurately describe the user’s movement. Secondly, the observation equations are formed with uncombined L1/E1 and L5/E5 pseudorange observations. Then, kinematic experiments in open-sky and GNSS-degraded environments are carried out, and the proposed filter is assessed in terms of the positioning accuracy and solution availability. The result in an open-sky environment shows that, assisted with L5/E5 observations, the root mean square (RMS) of the stand-alone horizontal and vertical positioning errors are about 1.22 m and 1.94 m, respectively, with a 97.8% navigation availability. Encouragingly, even in a GNSS-degraded environment, smooth navigation services with accuracies of 1.61 m and 2.16 m in the horizontal and vertical directions are obtained by using multi-GNSS and L5/E5 observations.