In-depth Analysis of China's Mobile Phone Market in September 2024: Declining Shipments and Shrinking Domestic Market Share

In-depth Analysis of China's Mobile Phone Market in September 2024: Declining Shipments and Shrinking Domestic Market ShareA recent report on the domestic mobile phone market in September 2024, released by the China Academy of Information and Communications Technology (CAICT), reveals a continued downturn. The report indicates that domestic mobile phone shipments reached 25

In-depth Analysis of China's Mobile Phone Market in September 2024: Declining Shipments and Shrinking Domestic Market Share

A recent report on the domestic mobile phone market in September 2024, released by the China Academy of Information and Communications Technology (CAICT), reveals a continued downturn. The report indicates that domestic mobile phone shipments reached 25.371 million units, a year-on-year decrease of 23.8%. Of these, 22.316 million units were 5G phones, representing an 88.0% share and a year-on-year decline of 22.3%. This data reflects weakening overall demand and decreased consumer purchasing intent.

The report also shows that 35 new phone models were launched in September, a 16.7% year-on-year decrease. Among these, only 13 were 5G models, a significant 35.0% year-on-year drop, accounting for just 37.1% of new launches. This reduction in new models further underscores the cautious strategies adopted by phone manufacturers in the face of a sluggish market and uncertainty about future prospects.

The domestic mobile phone market also faces significant challenges. Shipments of domestically produced phones reached 20.359 million units in September, a year-on-year decline of 18.4%, representing an 80.2% market share. This marks a 10-percentage-point drop from the 90.2% share in July, indicating a considerable shrinkage in the domestic market share. Simultaneously, 34 new domestic phone models were launched, a 17.1% year-on-year decrease, accounting for 97.1% of all new launches. This demonstrates that despite dominating the market share, domestic brands lack growth momentum.

A notable finding in the report is the significant decline in the market share of domestic brands in September. The 10-percentage-point drop compared to July coincides with the launch of Apple's new iPhones. The release of new iPhones typically disrupts the market, attracting consumers and consequently squeezing the market share of domestic brands.

The sluggish performance of the domestic mobile phone market in September can be attributed to two main factors. Firstly, there were no major new product launches from domestic brands, and a lack of large-scale promotional activities resulted in a subdued market atmosphere. Secondly, the launch of the new iPhones, with their strong brand appeal and product competitiveness, diverted some consumers, directly leading to a significant drop in the market share of domestic brands. These factors combined exacerbated the downturn in the domestic mobile phone market in September.

Comparing July and September data reveals the significant impact of market changes on domestic brands. The 90.2% market share in July indicated strong competitiveness and high consumer acceptance. However, the market shifts in September resulted in a sharp decline in market share, highlighting the fierce competition and the influence of external factors.

The September 2024 report reveals an overall downturn in the domestic mobile phone market, with year-on-year declines in both shipments and new model launches. While domestic brands still dominate, their market share has shrunk significantly, and growth momentum is lacking. This is closely related to the absence of major domestic phone launches, a lack of promotional activities, and the launch of new iPhones. Going forward, domestic manufacturers need to proactively adapt to market changes, enhance product innovation, and improve competitiveness to maintain their advantage. Monitoring market trends and adjusting marketing strategies accordingly will be crucial for navigating the challenging market environment.

This report provides valuable insights into the current state of China's mobile phone market in September 2024. It not only reveals the overall downturn but also showcases the strategies of domestic brands in facing challenges and the intensity of market competition. The future direction of the market remains to be seen.