Competition in the smartphone market is increasing day by day. This situation benefits the consumer, resulting in the emergence of more powerful and cheaper devices. However, technological progress also causes the products in question to last longer. For example, while the phone you bought in 20013 fell behind the times in just one or two years, some models can be used for a long time today. While this situation has already caused a slowdown in smartphone sales, the addition of the global economic crisis has made things difficult for manufacturers. China’s smartphone sales reached their lowest level in a decade in 2022. Here are the details…
China’s Smartphone Sales Continue to Decline in 2022
China’s smartphone sales reached their lowest level in a decade in 2022, with a 14% YoY decline, according to Counterpoint Research’s Market Pulse Service. This marks the fifth consecutive year of YoY sales declines in the country. The impact of the COVID-19 pandemic and macroeconomic headwinds were cited as the main reasons for the decline. In Q4 2022, China’s smartphone sales saw a 15% YoY decline.
Apple was one of the few brands that outperformed the market, with a 3% YoY decline in sales. The company also became the #2 brand in China for the first time, reaching its highest-ever quarterly market share of 23.7% in Q4 2022. Other major Android OEMs, such as OPPO, vivo, and Xiaomi, saw large YoY declines of 27%, 23%, and 19% respectively.
HONOR was the only brand to have positive YoY growth at 38%, but this was mainly due to a lower base in 2021 when the brand began its resurgence in the Chinese market. Chinese OEMs are still focusing on the premium segment and launching more foldable devices, with competition in this segment expected to increase in 2023.
Looking ahead, a market turnaround is expected once COVID-19 herd immunity is achieved, which is expected to happen in Q2 2023. However, consumer sentiment is expected to take longer to recover, particularly when it comes to income prospects, so explosive growth in smartphone sales is not expected this year. A marginal recovery can still be expected.
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(source)
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