Canalys reported that China’s smartphone market contracted 11% in the first quarter year-on-year, following a broader trend across the globe. According to the data, it was the worst first quarter period since 2013.
Shipments in the first quarter were 67.6 million, 11% less than the same period last year. Apple overtook it with a relatively minor sales decline of 3%, which helped it overtake Oppo for the lead.
This period was the fifth consecutive quarter of double-digit declines, said Lucas Zhong, a research analyst at Canalys. The pandemic has affected consumer behavior in the medium to long term, and now people prefer to spend their income on more necessary expenses and rationally move towards electronic goods.
Smartphone companies have gradually adapted to the shrinking market. Inventory is still an issue, just like every other major market in the world, catalyzing intense competition in lower tier categories.
| Agency | Shipments Q1 2023 (in millions) |
Market share | Shipments Q1 2022 (in millions) |
Market share | Annual growth |
| Apple | 13.3 | 20% | 13.7 | 18% | -3% |
| oppo | 12.6 | 19% | 13.9 | 18% | -10% |
| I live | 11.3 | 17% | 12.2 | 16% | -7% |
| Honor | 9.7 | 14% | 15.0 | 20% | -35% |
| Xiaomi | 8.5 | 13% | 10.6 | 14% | -20% |
| Other | 12.2 | 18% | 10.2 | 13% | 19% |
| Total | 67.6 | 100% | 75.6 | 100% | -11% |
Analyst Amber Liu said this year will be important for vendors to balance market share and profitability, but nearly all major players are already looking ahead to their 2024 growth plans, seeking breakthroughs in hardware technology .
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