China’s smartphone shipments beat expectations but decline continues amid trade tensions
- Huawei continued to lead domestic shipments with a 27 per cent year-on-year increase to 36.3 million units last quarter
China, the world’s largest smartphone market, saw better-than-expected handset shipments in the second quarter, although sales continued to decline as the country’s economy feels the effects of a protracted trade war with the United States.
Smartphone shipments fell 6 per cent to 97.9 million units in the quarter ended June 30, down from 104.2 million units a year earlier, according to a report on Wednesday by research firm IDC, which previously forecast a 9 per cent contraction during the period.
“The near-term outlook for China’s smartphone market is challenged by channel inventories and replacement cycles that aren’t shortening,” said Wang Xi, a research manager at IDC China. “At the same time, 5G phones and services are finally hitting the market in the second half of this year.”
Shenzhen-based Huawei will equip its self-developed operating system, known as Hongmeng, on new smart display products to be launched by budget brand Honor this weekend, according to people familiar with the situation.