Chinese Smartphone market may remain weak through 2023, IDC says
Chinese smartphone shipments fell 2.1% in the second quarter, extending a market decline that may persist throughout 2023, research house IDC said.
The decline came despite widespread discounting during the “6.18” online shopping festival in June. Apple Inc. was one of the few brands that managed to grow business, by 6.1%, IDC estimated in its latest market report. Shipments from Honor Device Co. and Xiaomi Corp. both declined by more than 17% in the quarter, while Huawei Technologies Co. lifted shipments 76.1%, mainly via the premium P60 series and foldable devices. Oppo maintained pole position with 17.7% market share, followed by fellow Chinese brands Vivo and Honor.
China's smartphone market, the world's largest, is struggling alongside a sputtering economy. Shipments have shrunk every quarter since the start of 2022, as consumers tighten their budgets to deal with a post-Covid downturn. The market could bounce back in the fourth quarter when Apple and its rivals typically release their latest devices, but that growth could be weaker than expected, IDC analyst Guo Tianxiang wrote.
Signals from the supply chain have been mixed. Taiwan Semiconductor Manufacturing Co., which makes chips for firms that supply the likes of Xiaomi and Oppo, cut its full year sales guidance last week citing weak macroeconomic conditions and a slower-than-expected recovery in demand in China.
“There're few signs of a clear rebound in shipments from vendors and the supply chain, because consumer demand hasn't recovered,” according to IDC. “China's smartphone market is still at a low point.”
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