China's Smartphone Market Makes a Strong Comeback: 2024 Shipments Reach 285 Million Units, Driven by Domestic Brands

China's Smartphone Market Makes a Strong Comeback: 2024 Shipments Reach 285 Million Units, Driven by Domestic BrandsChina's mainland smartphone market demonstrated a robust recovery in 2024, reaching 285 million units shipped, a 4% year-over-year increase, according to the latest research report from Canalys. This marks a return to growth after two years of decline

China's Smartphone Market Makes a Strong Comeback: 2024 Shipments Reach 285 Million Units, Driven by Domestic Brands

China's mainland smartphone market demonstrated a robust recovery in 2024, reaching 285 million units shipped, a 4% year-over-year increase, according to the latest research report from Canalys. This marks a return to growth after two years of decline. This growth isn't fleeting; it's built on a solid foundation. Canalys Senior Analyst Toby Zhu stated, "The Chinese smartphone market demonstrated remarkable vitality in 2024, with steady recovery across all four quarters." He further analyzed the drivers behind the recovery: strategic investment and technological innovation from vendors fueled a resurgence in mass-market demand and a flourishing high-end market.

In 2024, mass-market brands like Honor, OPPO, and vivo stimulated consumer upgrades with reasonably priced, well-designed, and durable phones. Meanwhile, the high-end market thrived. Technological innovations such as generative AI, system development and restructuring (like Huawei's HarmonyOS NEXT and Xiaomi's Pengpai OS), breakthroughs in in-house chips, and foldable designs continued to attract high-end users, driving upgrades in this segment. Toby Zhu summarized: "The market growth in 2024 was structurally healthy, driven by value-added products, technological innovation, market education, and demand recovery."

In terms of market share, domestic brands dominated in 2024. Vivo led with a 17% market share and 49.3 million units shipped. Huawei followed closely, shipping 46 million units, a significant 37% year-over-year increase, showcasing its strong competitiveness. Apple, OPPO, and Honor held the third, fourth, and fifth positions respectively, each with a 15% market share, engaging in intense competition.

In Q4 2024, the Chinese smartphone market saw a 5% year-over-year growth to 77.4 million units, boosted by government subsidies and year-end promotions. While Q4 is traditionally Apple's peak sales season, and Apple held the top spot with its iPhone 16 series (13.1 million units shipped), it faced strong competition from domestic brands. Apple's shipments fell by 25% year-over-year, highlighting the rising competitiveness of domestic brands in the high-end market.

Vivo and Huawei followed Apple in Q4 2024, each holding a 17% market share. Xiaomi ranked fourth with 12.2 million units shipped (a 29% year-over-year increase), and OPPO came in fifth with 10.6 million units (an 18% year-over-year increase). Canalys Research Manager Amber Liu noted, "While Apple and its iPhone 16 series maintained the top spot in Q4, they are facing increasing competitive pressure from domestic flagship devices." To counter this, Apple implemented seasonal promotions, improved retail experiences through channel management, offered trade-in programs, and expanded interest-free installment plans to boost its high-end competitiveness and user retention.

Looking ahead to 2025, Canalys predicts continued growth in the China mainland smartphone market, with shipments expected to exceed 290 million units, a year-over-year increase of over 1.7%. Canalys Research Analyst Lucas Zhong expressed optimism: "With anticipated steady demand recovery, stable macroeconomic improvement, and healthy channel operations, China mainland enjoys a uniquely advantageous market environment globally. Furthermore, the nationwide subsidies announced by the Chinese government in January, including for smartphones, laid the foundation for this year's market growth." This prediction aligns with 2024's performance, indicating a sustained positive recovery trend.

The market share changes of major brands from Q1 2022 to Q4 2024 reflect the evolving competitive landscape. The rise of domestic brands is evident not only in increased shipments but also in improved market share, demonstrating significant progress in technological innovation, product design, and marketing. This trend will further drive the prosperity of China's smartphone market.

In conclusion, the 2024 market performance shows China's smartphone market has rebounded strongly from two years of decline. Domestic brands, driven by technological innovation and proactive market strategies, are capturing increasing market share, a trend expected to continue into 2025. Supportive government policies further ensure sustained growth. While intense competition will continue, the market holds immense potential. The ability of domestic brands to maintain growth and enhance their global standing, and the strategies of international players like Apple to retain their advantage, will be key areas to watch. The recovery of China's smartphone market is significant not only for the Chinese economy but also signals a profound shift in the global smartphone landscape.