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Canalys: Smartphone Shipments Decline in China, Huawei Remains the Top Smartphone Manufacturer

31 October, 2017, 00:11 | Author: Abraham Jackson
  • Will Apple be a $1 trillion company this year?

Chinese smartphone shipments registered another quarter of decline as the market contracted 5% in Q3 2017 to 119 million units. According to the data, Huawei, Oppo, and vivo are in the lead with 19%, 18% and 17% of all shipments, respectively.

Apple ended its six-quarter decline in iPhone sales in China thanks to unexpectedly high demand for the recently-launched iPhone 8.

Smartphone sales in China may be down 5% year-on-year, but four of the five top-selling brands saw growth in Q3, reports Canalys. Further, Canalys noted that the iPhone 8 buyers must be thanked for the turnaround as the phone contributed more to the sales compared to what the iPhone 7 did at the same point a year ago. Huawei, Oppo and Vivo were top three vendors in China, followed by Xiaomi and Apple, according to Canalys.

Apple's AAPL executive team has continued to say that China is critical to the company's future. As of now, most people are not much interested in iPhone 8, which looks more like an updated version of iPhone 7, they are planning to purchase iPhone X because of its three major highlights i.e. Face ID, bezel-less display and super retina screen.

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China is an exceedingly important market for Apple that generates the company billions in revenue each quarter.

Mo feels the price tag of $1000 will keep customers in China away from the iPhone X, and that the new iPhone will not repeat the performance of the iPhone 6. He added that the iPhone X would enjoy a healthy grey market status, but Apple's popularity is unlikely to be helped by it in the short term.

Canalys also expects Xiaomi break the dominance of Huawei, Oppo and Vivo in Q4, on the account of its aggressive offline expansion in the country. "Moving into the last quarter of the year, the competition among the top vendors in China will remain tight with no clear victor", said Canalys Research Analyst Hattie He.

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