According to Counterpoint data, China's smartphone sales grew 6.6% year-on-year in the fourth quarter of 2023, achieving the first quarterly year-on-year growth after 10 consecutive quarters of year-on-year decline. Huawei continued to attract consumers with its comeback with its own 5G chipset, while Xiaomi and Honor maintained strong double-digit growth. Although Apple's sales in the fourth quarter fell 9% year-on-year, it still maintained its first position with a market share of 20.2%, followed by Xiaomi (16%) and Honor (15.2%). From an annual perspective, China's smartphone sales fell 1.4% year-on-year, and the year-on-year decline was 13.9% in 2022. Apple ranked first with a market share of 17.9%, followed by vivo (16.9%) and OPPO (16.2%). In the fourth quarter of 2023, Apple faces fierce competition from Huawei. In addition, the tepid performance of the iPhone 15 series is also reflected in the strong sales of the iPhone 14 series in H1. So far, OPPO and vivo do not seem to have benefited from the market recovery. Looking ahead to 2024, Counterpoint Research expects the annual growth rate of China's smartphone market to drop to single digits before returning to growth five years later. Huawei's mid-range Nova 12 series with 5G Kirin chipsets, launched at the end of the fourth quarter of 2023, is expected to continue to attract loyal users. Apple took price cuts in January to take advantage of the economic recovery and offset pressure from local OEMs. Chinese OEMs are expected to focus on generative AI, innovative form factors such as foldables, and advanced imaging technologies to boost sales and expand the user base. |
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