Huawei Is the Only Vendor Seeing Positive Growth in China



Chinese smartphone shipments continue to disappoint

China, which is the biggest smartphone market, continues to see fewer smartphone shipments. According to Canalys, shipments have now shrunk on a year-over-year basis for the fifth straight quarter.

The research house estimated that 88.0 million smartphones were sold in China, down 3.0% year-over-year, the lowest amount since the first quarter of 2013. Plus, apart from Huawei, all of China’s top vendors are seeing shrinking shipments.

Huawei extended its lead in the Chinese smartphone market by selling 29.9 million smartphones in the first quarter, growing 41.7%—an impressive feat, considering declining sales in the country. Its domestic strength has propelled it to second place globally, easily outselling Apple (AAPL).

Article continues below advertisement

Apple continues to struggle in China

Huawei now has an imposing 34.0% market share in the world’s biggest smartphone market. Meanwhile, Xiaomi (XIACF) continued to lose ground in China, selling only 10.5 million phones, shrinking 13% year-over-year.

Apple’s troubles in China continued. The tech behemoth sold only 6.5 million units in the country despite all its discounts, securing only 7.4% of the market. Apple’s shipments in China fell 30% year-over-year during the March quarter, according to Canalys.

Apple said its revenue from the Greater China region fell 21.5% year-over-year during the March quarter. Apple now makes only 17.6% of its revenue from the region. At one point,  it used to make over 20% of its revenue from the region.

The increasing upgrade cycle, as well as higher smartphone prices, in some cases continues to plague smartphone sales globally—as well as in China. This trend could continue until vendors come up with a leap in innovation.


More From Market Realist