The Market Pulse study from Counterpoint estimates that in Q2 2022, smartphone sales in China fell 14.2 per cent YoY. Less than half of the record peak of Q4 2016. The quarter’s volumes were 12.6% lower than the level reached during the severely pandemic-hit Q1 2020. When the iPhone 5 was released in Q4 of 2012. Almost ten years ago, sales were lower than they are now.
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Ivan Lam, a senior analyst, commented on the performance of the Chinese smartphone industry by stating that “China’s GDP only grew by 0.4 per cent YoY in Q2 2022, lower than the market projection of 0.8 per cent -1 per cent. Major cities around China had complete or partial lockdowns at this time, including Pan-Shanghai, an industrial and financial powerhouse.
The biggest damaged industry was the services sector, which experience contraction after going from YoY growth of 4 per cent in the first quarter to 0.4 per cent in the second. The consumption figures for April showed the worst loss, with total retail sales of consumer goods decreasing 11.1 per cent YoY. Sales of smartphones had a bad Q2 due to weak consumer mood and China’s high pace of smartphone adoption.
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More Details About China Smartphone Decline
Mengmeng Zhang, a research analyst, commented on the performance of leading vendors: “During the quarter, Vivo maintained its leadership. Vivo gained a substantial market share in the $250–399 price range thanks to the mid-to-high-end S12 series. Additionally, the market responded favourably to the sub-brand iQOO, particularly from younger consumers.
“HONOR continues its amazing return by growing its offline presence,” Zhang continued. Given that big cities were affected, HONOR’s coverage of smaller, less-affected areas helped the brand navigate the turbulence in Q2 2022. It should be noted that during the quarter, HONOR was able to overtake all top Chinese manufacturers, including Huawei. The “offline channel kings,” OPPO and Vivo, need to start treating HONOR seriously.
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Anushka Saxena
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