2023-07-31 06:23:00
According to a report by the firm IDC published this Thursday, July 27, the smartphone market in China continues to lose speed compared to last year. The loss of purchasing power of Chinese consumers is the main factor.
Huawei and Apple, only suppliers recorded positive growth
65.7 million smartphones were shipped in China in the second quarter of 2023. A drop of more than 2.1% compared to the same period last year. A semester that ended with 130.9 million total shipments, also down 7.3% compared to the previous year.
The last few years have been the most fragile for the global smartphone market and China is no exception. Beijing’s zero Covid policy and the slowing economy have had a lasting effect on spending in the country and led to a free fall in the smartphone market. The economic recovery is still weak, explaining that the difficulties of the sector remain. The country’s GDP over the past 3 months has not even reached 1% increase.
However, efforts have been made on the suppliers’ side but have not been sufficient to compensate for weak consumer demand. Apple has lowered the price of its iPhone 14 and many discounts have been made by operators and resellers during the “6.18” online shopping festival in June. Sales even fell by more than 5% during the commercial event.
In the market, the three leaders always compete with each other. Oppo retained first place in the ranking with 17.7% market share, followed by Vivo with 17.2% and Honor with 16.4%. However, they are registering a decline in growth compared to last year. Only Apple recorded a growth of 6.1% in the last quarter compared to last year and ranks fourth in the market with 15.3% of the share.
This quarter, Huawei made its big comeback on the podium, tied with Xiaomi. While the company recorded a drop in its activity of 17.5%, Huawei posted a dazzling growth of 76.1% and appropriated, like its rival, 13% of the market.
From a global perspective, according to research firm Canalys, the smartphone market showed a slowdown in its decline in the last quarter. Partly thanks to “industry-wide inventory reduction and signs of demand recovery in some regional markets,” according to a company analyst. This forecasts a moderate decline in the market over the year 2023, still dominated in the second quarter by Samsung, Apple, Xiaomi and Oppo.
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