Chinese Smartphone Market Sees Sharp Decline in Foreign Brand Shipments

Shipments of foreign-branded smartphones to China decreased sharply by 47.4% in November compared to the same month last year, according to data released by the China Academy of Information and Communications Technology (CAICT).

This decline marks the fourth consecutive month of falling sales, with foreign smartphone brands shipping only 3.04 million units in November, down from 5.77 million units a year earlier.

The drop follows a similar decline reported in October, where shipments fell by 44.25% year-on-year. Economic uncertainty and deflationary pressures have been major contributors to the downturn, with Chinese consumer prices hitting their lowest level in five months.

Apple, one of the most affected foreign brands, initiated a four-day promotional campaign in China earlier this month, offering discounts of up to 500 yuan on its flagship models. However, despite these efforts, Apple has continued to lose market share.

On the other hand, Huawei's resurgence is being closely watched. The company's sales in China surged by 42% year-on-year during the third quarter of 2024, outpacing Apple's 0.3% decline.

Recently, it was reported that Apple briefly fell out of the top five smartphone vendors in China during the second quarter of this year but regained its position in the following quarter. Nevertheless, smartphone shipments within China, including domestic brands, fell by 5.1% in November to 29.61 million units, signifying broader challenges facing the Chinese smartphone market.

The data from CAICT and IDC suggests that Huawei's comeback strategy is paying off, with the company continuing to regain ground lost to Apple and other foreign brands in the highly competitive Chinese market.