Global Smartphone Market
Main article: Smartphones (global market)
2024: Smartphone market growth 4% to 284.6 million units
In 2024, about 284.6 million smartphones were sold in China. This is 4% more compared to 2023, when shipments were estimated at 272.5 million units. Thus, the local market returned to growth after two years of decline, as stated in the Canalys review published on January 16, 2025.
Analysts note that strategic investments and technological innovations contributed to the recovery in demand in the mass segment. In the premium device sector, advanced features such as generative artificial intelligence have become the driver. The new generation of foldable smartphones equipped with a flexible display also had a positive impact on demand.
The first place in the ranking of the largest smartphone suppliers in China was taken by Vivo, which shipped 49.3 million devices and took 17% of the market: on an annualized basis, the supply of smartphones to this company increased by 11%. It is noted that Vivo has shown good dynamics thanks to its online and offline sales channels and strengthening partnerships with operators.
In second place is Huawei, which sold 46 million devices: this corresponds to a share of 16%. The company recovered from US sanctions and saw rapid growth, with sales jumping 37% year-on-year.
Apple dropped from first to third place with 42.9 million smartphones delivered and a 15% share: the company's sales fell 17% year-on-year. Apple has faced increasing pressure from Chinese manufacturers.
In fourth and fifth places are with Oppo Honor approximately the same indicators: the company delivered 42.7 million and 42.2 million devices, respectively, taking 15% of the local market each. Moreover, both Oppo and Honor shipments decreased by 3% on an annualized basis.[1]
2023: The leader of the Chinese smartphone market for the first time in many years was not a local company
In 2023 Apple , it became the leader of the Chinese market smartphones with a share of 17.3% against 16.8% a year earlier. For the first time in many years, the first place in sales of pipes PEOPLE'S REPUBLIC OF CHINA in was taken by a non-local company. This is evidenced by analyst data IDC released in January 2024.
According to the study, the volume of the Chinese smartphone market in 2023 reached 271.3 million units, down 5% compared to 2022. Deliveries of the device were the lowest in 10 years.[2]
2022: 13.2% market drop to 285.8 million
In 2022, the volume of the Chinese smartphone market amounted to 285.8 million units, down 13.2%. For the first time in 10 years, the supply of these devices in the Celestial Empire fell below 300 million units. IDC Analysts cited such data on January 29, 2023.
It is noted that strict measures in connection with the pandemic COVID-19 and the economic downturn had a negative impact on demand. Despite the fact that smartphones China they are widespread almost everywhere, the market size in 2022 approached the level of ten years ago (2012), when two of the five devices sold were still ordinary push-button phones.
 | Historically, low supply levels have smartphone makers thinking about how to build a more sustainable business model and a more focused marketing strategy. Despite the easing of restrictions due to COVID-19, a rapid recovery in the market is unlikely, since consumers spend money on areas such as recreation and services, said Will Won, senior research manager for the client device sector at IDC. |  |
At the end of 2022, the largest supplier of smartphones in China became Vivo with a share of 18.6%. In second place is Honor 18.1%, while closes the top three Oppo with a result of 16.8%., Apple located on the fourth line, also received a share of about 16.8%. Fifth Xiaomi place with 13.7% of the local market. Other suppliers collectively hold 16%. All the leading players from the top five, with the exception of Honor, in 2022 faced a reduction in shipments. In turn, Honor was able to increase deliveries by 34.4%.[3]
The study notes that by the end of 2022, iPhone production at a factory in China returned to normal volume after the company worked in a limited mode due to outbreaks of COVID-19.
2021
China accounted for 67% of phone production
On September 13, 2022, Counterpoint Research analysts published statistics according to which China accounted for two-thirds of phone production in 2021. The leadership of the PRC is due to the fact that Apple and other Chinese OEMs could not compensate for the decline in Huawei production.
Huawei accounted for most of its total output in 2020. Unlike China Huawei, which mostly makes its phones domestically, other Chinese OEMs are looking to diversify their manufacturing sites to meet local demand through local manufacturing. With a decrease in demand for phones in China, the share of Chinese production is also expected to decline in the future.
Apple is heavily dependent on China, since most of its products come from this particular country. However, Apple is starting to test its manufacturing sites outside China to diversify production and reduce dependence on the country amid frequent domestic disruptions related to the COVID-19 pandemic and rising tensions between the United States and China. The production of the iPhone 14 in India and the iPad in Vietnam appear to be part of that endeavor. However, the corporation will take a long time for any other country to replace the Chinese production ecosystem.
Major Chinese OEMs such as Xiaomi, OPPO and vivo, which have been shrinking or stagnating since 2016, were able to increase production in China in 2021 as Huawei held back U.S. sanctions. HONOR also makes most of its phones in China. However, the company will diversify its manufacturing bases in an effort to expand into markets outside China, but like Huawei, it will retain China as a major manufacturing hub.[4]
The largest smartphone market in the world
5G isn't driving demand for new smartphones
China's experience shows that users value 5G technology, but there will be no rush demand for it. China is the world's most advanced country for mass 5G adoption, while showing mixed results on the impact of 5G on the telecommunications industry.
More than 30% of all smartphone users in China (in absolute terms, 450 million people) used the 5G mobile plan at the end of 2021 - two years after the launch of 5G services with active support from state-owned mobile companies. 5G technology did help telecom providers increase average revenue per subscriber (ARPU).
Still, Chinese consumers have been slow to swap their mobile phones for 5G-enabled devices. Although the 2021 of all smartphones sold in China were 5G-enabled devices in 75%, the total volume of their shipments remained practically unchanged from 2020 (growth of only 0.3%) and was much lower than the level of the "pre-pandemic" 2019 and the record indicators of 2016 (the fall was 11% compared to 2019 and as much as 30% compared to 2016).
The example of China, home to about 70% of all 5G technology users in the world, is even more concerning for suppliers given the fact that sales have also been disappointing in other leading 5G markets - in South Korea and Taiwan, where local smartphone shipments have generally been flat since 2019 despite excellent coverage by 5G networks. The lack of the so-called "killer feature" provided by 5G, and sometimes disappointing data transfer rates over the mobile network compared to theoretical capabilities, may explain the lack of enthusiasm among consumers for 5G devices.
Apple returns top smartphone sales in China for the first time in six years
On January 26, 2022, it became known that in the fourth quarter of 2021, Apple's share in the smartphone market in China reached a record level: the iPhone manufacturer regained first place in the country for the first time in six years.
The Cupertino-based giant took 23% of the market, with December quarter sales up 32% year-on-year, according to analysts Counterpoint Research.
The Vivo Chinese brand came in second with 19% market share, followed by Oppo 17%., Honor the brand, smartphones which previously owned but was Huawei spun off into a separate business, became the fourth largest player with 15% market share, followed by 13 Xiaomi %.
Despite a 9% decline in total smartphone sales in China, Apple has experienced solid growth thanks to the iPhone 13 line, which was unveiled in September 2021.
Huawei, Apple's main competitor in the premium market, has seen sales decline due to. ongoing sanctions USA Huawei's market share in China was just 7%, with sales down 73% from 2020.
2016: Apple strikes deal with Chinese authorities so the company has no complications in the country
In December 2021, it became known that Apple CEO Tim Cook held talks with Chinese state regulators, which paved the way for the company's investments of at least $275 billion over 5 years. The deal was agreed in 2016. Read more here.
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