China Smartphone Shipments Plunge 17% In 2nd Qtr; Apple Edges Higher


China Smartphone Shipments Plunge 17% In 2nd Qtr; Apple
Edges Higher

The second quarter saw a drop in smartphone shipments to China by 17%, from 74.9million units a year ago. This shows how China’s largest brands need to expand internationally and develop new features in order to survive in sluggish markets for 5G.

Two brands associated with China’s unlisted BBK Electronics were Vivo and Oppo. They retained the top two positions with 18.2 and 16.0 millions units respectively, Canalys reported on Thursday. Xiaomi’s billionaire CEO Lei Jun, was named China’s top CEO. It ranked third on a list that changed this month and shipped 12.6million units. This is a 35% increase over a year ago; it also increased its market share to 17%, from 10% in the previous period. Apple was fourth with 7.9m units shipped. This is a modest 2% increase year-on-year.

Amber Liu, a Canalys analyst and research director said that smartphone brands “are ferociously competing for the decline in Huawei” and were actively acquiring channel resources to launch targeted products. This led to high inventories in (the first quarter), which slowed channel demand in the second quarter.

Canalys stated that “In addition, this is a slowing down of the timeline for replacement smartphones in China, which is compared to the market in 2019 before the COVID-19 pandemic with 167 million units versus the 185 million units during the same time period two years back.” The wave of 5G smartphone upgrade will slow down as many consumers have already switched to the most recent network generation. Vendors must bring new and innovative features to the market in order to buck this trend.

Xiaomi, on the other hand, has expanded overseas. BBK Electronics, for its part, has grown abroad through its new realme label.

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