IDC Predicts Chinese Smartphone Market to Remain Sluggish Through 2023
According to research firm IDC, Chinese smartphone shipments experienced a 2.1% decline in the second quarter, continuing a downward trend that is expected to continue until 2023.
The drop came despite extensive discounting during June’s online shopping festival “6.18”. Apple Inc. was one of the few brands that managed to grow its business by 6.1%, IDC estimated in its latest market report. Shipments from Honor Device Co and Xiaomi Corp. both fell more than 17% in the quarter, while Huawei Technologies Co lifted shipments by 76.1%, driven mainly by the premium P60 series and foldable devices. Oppo retained the pole position with 17.7% market share, followed by other Chinese brands Vivo and Honor.
China’s smartphone market, the world’s largest, is struggling alongside a buoyant economy. Shipments have shrunk every quarter since early 2022 as consumers tighten their budgets to weather the post-Covid recession. The market may recover in the fourth quarter, when Apple and its rivals typically release the latest devices, but growth may be weaker than expected, IDC analyst Guo Tianxiang wrote.
The signals from the supply chain have been contradictory. Taiwan Semiconductor Manufacturing Co., which makes chips for companies such as Xiaomi and Oppo, cut its full-year sales guidance last week, citing weak macroeconomic conditions and a slower-than-expected demand recovery in China.
“There is little sign of a clear recovery in supplier and supply chain shipments as consumer demand has not recovered,” according to IDC. “China’s smartphone market is still at a low level.”
