China’s smartphone market recovers in 2023 amid increased competition, Huawei’s strong comeback in 5G handset segment

Domestic smartphone shipments totalled 289 million units last year, compared with 272 million in 2022, according to official data

That increase was in stark contrast with the 22.6 per cent year-on-year decline recorded in 2022

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China’s solid smartphone market growth in 2023 showed improved consumer appetite for handset upgrades amid Beijing’s efforts to ease mounting pressure from debt, deflation and weak confidence. Illustration: Shutterstock

Published: 8:00pm, 23 Jan 2024

China’s smartphone industry showed signs of recovery in 2023 with 6.5 per cent shipment growth from the previous year, according to official data, as the world’s largest handset market endured the country’s shaky economic recovery and saw domestic competition intensify amid Huawei Technologies’ strong comeback in the 5G segment.

Domestic smartphone shipments totalled 289 million units last year, compared with 272 million in 2022, according to the latest report published on Monday by the China Academy of Information and Communications Technology (CAICT), a scientific research institute under the Ministry of Industry and Information Technology.

That increase was in stark contrast with the 22.6 per cent year-on-year decline recorded in 2022. Last year’s shipment volume remained behind the 351 million units shipped in 2021.

The domestic smartphone industry’s performance in 2023 marked its first year-on-year growth since 2021, reflecting improved consumer appetite for handset upgrades amid Beijing’s efforts to ease mounting pressure from debt, deflation and weak confidence.

Huawei Technologies’ popular Smart Pro 60 5G smartphones are seen on display at a store in Xian, capital of northwestern Shaanxi province, on September 9, 2023. Photo: Shutterstock

The positive 2023 China smartphone unit shipment figure from CAICT was also in contrast to market research firm IDC’s earlier forecast of a 3.6 per cent decline in domestic handset shipments last year to 276 million.

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