Counterpoint: China's smartphone market to grow 11% year-on-year in October 2023

According to the latest report from Counterpoint, the Chinese smartphone market is showing signs of recovery, with an average year-on-year growth of 11% in the first four weeks of October. Huawei has been the most prominent brand, accounting for the majority of net growth during this period.

"Whether it's year-on-year or a shorter-term comparison, the data shows that the economy is recovering," said Mengmeng Zhang, senior China analyst. "For sure, China is building some momentum. This is good news as we are about to enter the peak sales season."

China Market Analyst Archie Zhang said: "Huawei is making a comeback with the launch of its new Kirin phones. The clear highlight in October was Huawei's turnaround with its Mate 60 series. Xiaomi's growth momentum was very strong due to the marketing of new products and strong media coverage of its 'Made in China' chipsets. Demand continued to remain in the high double digits and we also saw a halo effect with other models from this supplier performing well."

Production issues have been a recurring theme this year, with both Huawei and Apple under pressure to launch new devices. The latter has experienced some issues with certain color variants of the Pro Max, leading to longer waiting times and higher prices on some e-commerce platforms.

Huawei's inventory shortage is due to much higher demand than expected, as well as pressure on component supply chains and EMS suppliers. Ivan Lam, senior manufacturing analyst, said: "Huawei's ability to scale up to this new normal is not only the main determinant of its own growth, but also the main impact of the broader market. How to survive the Double Eleven period is Huawei's first real test. Various indicators show overall sales growth, but how much Huawei contributes to this outstanding performance depends on the rest of the quarter."