The Chinese smartphone market experienced 10% growth in the second quarter with units reaching 70.5 million units, and local vendors occupying the top five spots for the first time.
Analyst house Canalys said in a report vivo reclaimed top spot with 13.1 million units taking almost a fifth of the market. This was a growth rate of 15% year-on-year, driven by its strong sales strategy during the 618 ecommerce shopping festival.
Oppo ranked second with 11.3 million units buoyed by its new Reno 12 series, Honor took a podium finish with 10.7 million units, up YoY by 4%. Huawei was fourth with 10.6 million units a surge of 41% YoY. Meanwhile, Xiaomi secured fifth spot with 10 million units, up by 17%, the second highest rate of growth in the top five.
Canalys Research Manager Amber Liu said: "The Chinese market is finally aligning with global recovery speeds" and this was “driven by the supply side, which leverages nationwide sales events such as '618'.”
Chinese dominance
Canalys Research Analyst Lucas Zhong added Q2 was the first quarter to record five local vendors dominate the top positions in the Chinese smartphone market.
"Chinese vendors' strategies for high-end products and their deep collaboration with local supply chains are starting to pay off in hardware and software features,” said Zhong.
Canalys Senior Analyst Toby Zhu predicted the Chinese smartphone marker will see single-digit recovery in 2024 as it continues to normalise. He noted Huawei’s upcoming launch of smartphone operating system HarmonyOS Next could “impact the market landscape” in H2.
The Chinese vendor is aiming to position its self-developed HarmonyOS as an alternative to Android and iOS. The company had pivoted to push its own mobile operating system since sanctions from the US restricted Huawei from licensing Android from Google.
Other potential market disruptors include the development of AI innovations from all vendors and growth in overseas markets.
