According to preliminary data from analyst firm IDC’s Worldwide Quarterly Mobile Phone tracker, smartphone shipments in China grew by 6.5% year-on-year to 69.3 million units in the first quarter of 2024. While the growth is more attributable to the low base effect, it marks the second consecutive quarter of growth, adding momentum to the market recovery, IDC noted.
Smartphone shipments in the quarter were higher than analysts’ forecasts, mainly due to significant increases in shipments from Honor and Huawei, which spurred growth of the overall Android device market to 9.3% year on year. However, Apple’s sales declined 6.6% during this period as it faced stiffer competition in the local market.
Lunar New Year celebrations also boosted consumer sentiment and demand for entry-level and mid-range devices in the first quarter of 2024. In the high-end device segment, AI hype and foldable models have allowed Android smartphone makers to further differentiate themselves from Apple and spark increased interest from Chinese consumers.
“Honor came out on top with its strong product portfolio and Magic 6 series with popular AI features, says Arthur Guo, Senior Analyst, Client Systems Research, IDC China. — Meanwhile, Huawei made a strong comeback and achieved a draw with Honor, although supply constraints will still be an issue. Apple’s price cuts this quarter failed to mitigate the impact of intense competition from Android device makers.”
Will Wong, senior manager of client device research at IDC Asia/Pacific, noted that the close competition between the two leading players means Chinese consumers are more likely to switch from one brand to another. Therefore, competitors cannot stop and must continue to innovate to ensure strong brand loyalty among users.
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