Published in Mobiles

Smartphone sales drop in China

by on29 July 2022

Numbers at their lowest 

Sales in China dropped sharply in second quarter by 14.2 per cent over last year, according to number crunchers at Counterpoint.

The Chinese obsession with cracking down on Covid is having a similar effect as Mao Zedong's attempts to kill off sparrows and flies. 

“During this period, major cities across China, including financial and manufacturing hub Pan-Shanghai, went through full or partial lockdown,” Counterpoint analyst, Ivan Lam, says in a release.
“The hardest hit was the services sector, which fell into contraction territory, from four per cent YoY growth in the first quarter to 0.4 per cent in the second quarter. The deepest decline occurred in April’s consumption data, with total retail sales of consumer goods falling 11.1 per cent YoY. Weak consumer sentiment combined with the high smartphone penetration rate in China resulted in poor Q2 performance of smartphone sales.”

Virtually all of the major players saw sales drop. Vivo, Oppo, Xiaomi and Huawei all saw double digit drops from Q2 2021. The Tame Apple Press has been claiming that Apple did not suffer, but it saw a 5.8 per cent drop and is not that big a player in China anyway.

Honor had a brilliant year. The Shenzhen-based Huawei spinoff effectively doubled its sales figures and moved from a 7.7-18.3% market share, while securing the number two spot between Vivo and Oppo.

Analyst Mengmeng Zhang said that with the lockdowns hitting major cities, Honor’s coverage in lower-tier cities, which saw fewer lockdowns, helped the brand steer through the turbulence in Q2 2022. It may be noted that Honor managed to take share from all the leading Chinese brands, including Huawei, during the quarter. It is time for Oppo and Vivo, known as the ‘offline channel kings,’ to take Honor seriously.”


Last modified on 29 July 2022
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