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October 22, 2019

Chinese smartphone market stopped its growth and shrank in 2017

Chinese smartphone marketChinese smartphone market is no longer growing, as last year reported its first annual decline in sales. Already in the second quarter of the year there was a drop, but this is the first time there has been a decrease in sales for the whole year. The Chinese smartphone sales fell by 4% annually and reached 459 million units last year. In the fourth quarter, they dropped 14% yoy, with 113 million units sold.

Despite the evidence of saturation in the market, Huawei continued its impressive growth, generating 24 million sales in the last quarter.

Oppo and Vivo marked a boom in the world with strong sales in emerging markets in Asia but in China their sales shrank by 16% and 7%, respectively. The first one sold 19 million units and the second one 17 million units.

The release of the iPhone X and iPhone 8 helped Apple to push Xiaomi to fourth with 13 million sales in the fourth quarter of 2017.

The slowdown in domestic market growth has prompted Chinese smartphone manufacturers to start looking for overseas markets. Many headed to India, where they did well in terms of local competition. Among the other markets that companies prefer is Indonesia, which can see significant growth.

For example, Xiaomi, which overcame Samsung in India in the fourth quarter, headed to Spain, Mexico, Russia and parts of Africa.

The United States proved to be a more difficult market. Xiaomi has been selling its accessories there for some time, but still can not boast of great success on this smartphone market, despite public requests for its intentions.

Those who approach more aggressively face resistance. The second largest US telecom operator, AT&T, has dropped plans to sell Huawei Mate 10 Pro after it turned out that there is pressure from the government in terms of partnership.

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