China's Smartphone Market Recovers, Vivo Leads, Huawei Shows Strong Growth

China's Smartphone Market Recovers, Vivo Leads, Huawei Shows Strong GrowthAccording to the latest data from market research firm Techinsights, China's smartphone shipments grew by 5% year-over-year in the second quarter of 2024, reaching 67.4 million units, indicating an overall recovery trend in the market

China's Smartphone Market Recovers, Vivo Leads, Huawei Shows Strong Growth

According to the latest data from market research firm Techinsights, China's smartphone shipments grew by 5% year-over-year in the second quarter of 2024, reaching 67.4 million units, indicating an overall recovery trend in the market.

Vivo topped the chart with 13.1 million shipments, up 13.9% year-over-year, capturing a 19.4% market share. Its growth was mainly driven by the strong performance of its low-end Y series and high-end X series, reflecting Vivo's successful market positioning across different price segments.

OPPO (including OnePlus), with 11.2 million shipments, came in second, experiencing a decline of 8.2% year-over-year, commanding a 16.6% market share. OPPO adopted a cautious approach to new product releases, focusing on high-quality and high-volume models, which might be the primary reason for its decline in shipments.

Huawei secured the third position with 10.4 million shipments, achieving a whopping 56.8% year-over-year growth, representing a 15.4% market share. Huawei's robust performance in the Chinese market is noteworthy, showcasing the continued strength of its brand influence and product competitiveness. However, it's worth noting that Huawei's growth has slowed down compared to previous quarters, potentially due to global chip supply challenges.

Honor shipped 10.3 million units, experiencing a 4.6% year-over-year decline, with a 15.3% market share. Honor strengthened its mass-market product lineup, including the mid-to-high-end Honor 200 series and the entry-level Play 50 series, but its shipments still saw a decrease.

Xiaomi came in fifth with 10 million shipments, up 16.3% year-over-year, holding a 14.8% market share. Xiaomi's achievements during the 618 shopping festival and the resumption of its offline channel expansion were the key drivers of its growth.

Apple shipped 9.5 million units, capturing a 14% market share (the firm did not disclose year-over-year data). Apple's performance in the Chinese market remained relatively stable, with the decline observed in the first quarter of 2024 somewhat mitigated in the second quarter. This was attributed to substantial price discounts on the iPhone 15 series and older iPhone models, along with channel promotions during the 618 festival.

Overall, China's smartphone market continued its recovery trend in the second quarter of 2024, driven primarily by normalized inventory levels and more aggressive promotional activities by manufacturers. However, consumer demand remains weak, and market competition remains intense.

China's smartphone market is expected to continue to be influenced by various factors in the coming quarters, including the economic situation, consumer confidence, new product releases, and promotional activities. Manufacturers need to continuously adapt their product and marketing strategies to market changes to maintain a competitive advantage.