Global Smartphone Market

Main article: Smartphones (global market)

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.

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IDC

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.^[1]

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%.^[2]

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.

China accounted for 67% of phone production for the year

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.^[3]

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