China's smartphone growth ended, 4% decline on 2017
Date:2018-02-14 / Written by: Topfoison / Read: 402
China is the world’s largest smart phone market,However, growth in this market since 2009 will be temporarily drawn on the rest. It was the first time of sales of smartphones dropped in China history in 2017, with a total sales volume of 458 million units which declined 4% compare with 2016.
One of reasons for the recession in China ‘s Smart phone market is the poor performance in the fourth quarter of 2017,down by more than 14% from the same period of last year with only 113 million.The best-performing handset maker was Huawei, which contrarian rose 9% to 24 million to maintain its position as the market leader. Oppo and Vivo held the 2nd and 3rd place respectively, with sales declining 16% and 7% respectively. Oppo's 19 million sales and Vivo's 17 million sales. Apple won fourth place with 13 million sales and pushed Xiaomi to fifth place.
Huawei broke the historical record in the Chinese market, setting a new high of 24 million in the fourth quarter and boosting handset sales in 2017 to 90 million units. Canalys research analysts said Huawei has achieved quite good results in third- and fourth-tier cities, with models such as Nova and Honor taking some market share from smaller handset makers such as Jinli and Meizu. Huawei's sub-brand glory hand over a very good transcripts, sales accounted for more than half of Huawei's overall mobile phone. However, glory and other models of Huawei's internal competition is more and more intense, Huawei must find ways to solve this issue of self-employed family members.
Despite the drop in sales in Q4, both Oppo and Vivo posted double-digit annualized growth throughout 2017. However, Canalys analysts also said the market has cooled faster than expected, both of which have flagship stores in tier one cities to reinforce brand value.
Another Canalys research analyst pointed out that the downturn in the Chinese market will seriously hit those Chinese manufacturers who are heavily dependent on the domestic market. This will not only impact their cash flow and profitability, but also diminish their ability to expand overseas. With the re-emphasis of Lenovo and ZTE in 2018 on the Chinese market, the situation has become more and more severe for small factories such as Jinli and Meizu. Analysts predict that there will be no small change in China's smart phone market in 2018, as manufacturers will expand or maintain their market share, while the living space of small factories will be further threatened.