The Chinese smartphone market continues its downward spiral in terms of shipment. A report by Digitimes Research indicates that shipments of cell phones by China’s mobile phone producers shrank 30.5% when compared to the shipment last quarter. The shipment also shrank 5.8% when compared to the shipment of last year, berthing at an estimated 140 million units in the first quarter of 2019. The report fingered debilitated consumer confidence in the domestic market occasioned by the US-China trade tensions and off-peak season effects in the overseas market.
In any case, Huawei figured out how to see an expansion of more than 10 million units in cell phone shipments in the primary quarter when contrasted with the sum shipped a year back. The tech giants positive outlook is as a result of the launch of several entry-level and mid-range models and solid consumer patronage in China in the face of several furores with the US government.
The second to fourth spots are occupied by Xiaomi, Oppo and Vivo but they all saw their shipments decrease fundamentally in the first quarter in accordance with the general market outlook. Shipments from Xiaomi alone contracting by over 20% when compared to that of the same period last year.
Looking forward, Digitimes Research projects that China’s cell phone shipments are expected to post a successive development of over 20% and narrow the annual decline rate to 1.9% in the second quarter.
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The steady decline in shipment is also due to a saturated market especially as new smartphones get released so often. This explains why Chinese OEMs are looking to explore new markets in a bid to ramp up shipments. A rebound in export sales will help offset the continued weak demand in the domestic market. Digitimes Research projects Huawei will be the only OEM that will see its shipments keep on growing on a yearly basis in the second quarter.
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