Canalys: China's smartphone market shipments fell 11% year-on-year in 2020

Canalys, a global technology market analysis and market consulting organization, today released the global smartphone market research report for the fourth quarter of 2020. The report showed that in the fourth quarter of 2020, smartphone shipments in mainland China reached 84 million units, a year-on-year decrease of 4%; Huawei (including Honor) market share fell from 41% in the third quarter of 2020 to 22%, but continued to maintain its leading position, OPPO ranked second and vivo ranked third.

The following are the details of the report:

Shanghai (China), Bangalore (India), Singapore, Reading (UK) and Portland (USA)

Friday, January 29, 2020

summary:

In the fourth quarter of 2020, smartphone shipments in mainland China reached 84 million units, a year-on-year decrease of 4%.

In the fourth quarter of 2020, Huawei's (including Honor) market share fell to 22% from 41% in the third quarter of 2020.

Throughout 2020, Huawei (including Honor) continued to maintain its leading position, OPPO ranked second and vivo ranked third.

In the fourth quarter of 2020, smartphone shipments in mainland China reached 84 million units, down 4% year-on-year. Full-year shipments in 2020 fell 11% year-on-year to 330 million units, as Huawei's performance deteriorated rapidly due to US sanctions, hindering the overall market recovery.

In the fourth quarter of 2020, Huawei (including Honor) shipped 18.8 million units, with a market share of 22%, down from 41% in the third quarter of 2020. OPPO quickly rose to second place, shipping 17.2 million smartphones, a year-on-year increase of 23%. Vivo also achieved a good year-on-year growth of 20%, ranking third with 15.7 million units. Apple also achieved its best shipment performance in China in recent years, with more than 15.3 million units shipped in the fourth quarter and a market share of 18%, up from 15% in the fourth quarter of 2019. Xiaomi ranked fifth with 12.2 million units shipped, a year-on-year increase of 52%.

"This may be Huawei's most difficult period. Under the ban, it cannot even serve its own domestic market," commented Nicole Peng, vice president of mobile business at Canalys. "Huawei's shipments in the fourth quarter shrank by nearly 50% year-on-year. Although the demand for Huawei products is still huge, Huawei will not be able to meet the demand in the foreseeable future. Other leading manufacturers are eyeing this opportunity. OPPO, vivo and Xiaomi are competing for Huawei's offline channel resources across the country, including channel partners in towns and villages, and have invested huge amounts of money in store expansion and marketing support. These measures have brought immediate results, and market share has risen rapidly in just a few months. Active expansion is the keyword for channel construction for OPPO, vivo and Xiaomi in 2021."

"Apple's performance in China in 2020 was remarkable. Driven by the iPhone 11 and iPhone 12 models, full-year shipments finally returned to 2018 levels. Shipments in the fourth quarter even reached Apple's highest shipment record in the Chinese market since the release of the iPhone 6S in the fourth quarter of 2015," said Amber Liu, research analyst at Canalys. "Apple's launch of the new iPhone 12 in China coincided with the time when Huawei's supply was cut off. Huawei is Apple's only strong competitor in the high-end field, but its flagship Mate series shipped less than 4 million units in the fourth quarter. However, Apple has not relaxed its marketing of the iPhone 12, including online promotions on major e-commerce platforms across the country, launching more trade-in replacement plans, and the most extensive interest-free installment payment on the market in cooperation with major banks, all of which are conducive to boosting Apple's new phone shipment performance." Amber Liu said.

"Honor is also a player we should not ignore in China in 2021. Honor has almost completely inherited Huawei's advantages and aims to win Huawei's loyal customers," said Nicole Peng. "As 5G becomes a required feature of any smartphone launched on the market, leading manufacturers like OPPO, vivo and Xiaomi will double down on their flagship and high-end product lines, focusing on the breadth of product lines and the use of high-end parts and components. As Huawei gives up market share, consumers and channels will face more brand choices, and new or small brands will have more opportunities to stand out. In the coming year, the market landscape will usher in a long-awaited wave of turbulence and adjustment."