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.”
Huawei set to unveil Hongmeng OS for smart displays as Android fate hangs in the balance
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.
The company’s smartphone shipments in China grew 27 per cent to 36.3 million units, up from 28.5 million units a year ago, that allowed it to seize a 37 per cent market share in the second quarter.
“In only one-and-a-half months, Huawei was able to further strengthen its position in China and grab market share from other players,” said Will Wong, research manager for client devices at IDC Asia-Pacific. “Its success was not only because it brought much of its overseas teams back to China to focus on local distribution, but also because of its strong brand image in the country.”
Huawei has targeted a significant increase in its share of China’s smartphone and telecommunications network equipment markets to help offset potential losses overseas because of that US action, according to a Post report in June, citing people familiar with the matter.
Vivo and Oppo, each of which recorded about half of Huawei’s total shipments last quarter, saw their own shipments record a year-on-year decrease of 8 per cent and 14 per cent, respectively.
Hong Kong-traded Xiaomi Corp, whose shipments were about a third of Huawei’s in the same period, saw a 19 per cent drop in shipments, which was the biggest decline among China’s major handset vendors last quarter.
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