Smartphone shipments in China fell 11 percent year-on-year in the third quarter as the country’s slowing economy took a toll on consumer demand, research firm Canalys reported on Thursday. Brands shipped a total of 70 million smartphones to retailers in the period, down from 78.9 million in the same period last year.
While Apple was the only brand to buck the trend, with shipments up 36 percent to 11.3 million, analysts say the increase was due to demand for the iPhone 14 Pro model, while demand for the base iPhone 14 model was weak.
The decline continues a trend in the sector, which has faced challenges in recent years including the global chip shortage, the economic impact of China’s zero-COVID policy and longer consumer upgrade cycles.
“Suppliers have been struggling with rapidly declining demand and high inventory in recent quarters, severely damaging confidence in the overall supply chain,” Canalys analyst Toby Zhu wrote in the report.
Vivo, owned by Shenzhen-based conglomerate BBK, was the top-performing brand in the quarter, shipping 14.1 million devices and capturing 20 percent market share. The top three brands — Vivo, Oppo and Honor — saw their shipments decline by 23 percent, 27 percent and 16 percent respectively.
Apple currently ranks fourth among the best-selling brands in China, with a market share of 13 percent.
The company “is currently not insulated from weak consumer demand in mainland China,” Canalys analyst Amber Liu wrote. She added that the company has launched aggressive promotions for previous-generation devices to fend off competition from rivals.
Xiaomi, which ranks fifth as the best-selling brand, saw shipments drop by 17 percent.
© Thomson Reuters 2022
