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China Smartphone Sales Drop: Huawei & Apple Defy Trend
14 Jul
Summary
- China's smartphone shipments decreased by 4.3% in Q2.
- Huawei and Apple were the only vendors to increase shipments.
- Rising component costs forced price hikes by most competitors.
China's smartphone market continued its downward trajectory in the second quarter, marking the fifth consecutive period of decline. Shipments fell by 4.3% year-over-year, totaling 66 million units. This slump also affected first-half shipments, which were down 4.2% from the previous year.
Most manufacturers faced rising costs for memory chips and other components, leading them to increase prices. This strategy discouraged consumers, contributing to the market's contraction. The impact of government subsidies also diminished, removing a previous support for demand.
In contrast to the overall market trend, Huawei and Apple demonstrated resilience. Huawei saw its shipments grow by 19.4%, securing a leading 22.6% market share. Apple followed with a 24.4% increase in shipments, capturing an 18.1% market share. Analysts noted that these two companies maintained stable prices while competitors raised theirs, attracting hesitant buyers.
