Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 18, China's smartphone market in 2022 is facing unprecedented challenges due to the impact of the external environment, the development of mobile phone technology and consumer demand, according to a report released by IDC, a research consultancy.

The impact of the epidemic continues, and it will take longer for the economic environment and consumer confidence to recover. Inventory pressure remained in the first half of the year. Shipments in China's mobile phone market are expected to fall 0.9% year-on-year in 2023, narrowing the decline; it is expected to rebound in 2024.

In addition, in recent years, mobile phone performance is excessive, new product innovation is insufficient, and there are no new "killer" applications in software, resulting in consumers' lack of mobile energy. Although the epidemic prevention policy is beginning to relax, the impact of the epidemic will continue to be restricted for some time, with consumer demand for mobile phones mainly used in mobile scenarios continue to decline compared with large-screen terminals such as tablets and PC. The replacement cycle of smartphones in China is expected to increase to 34 months.

CTOnews.com learned that the September 2022 report of China Information and Communication Institute showed that there were 20.922 million mobile phones shipped in the domestic market, down 2.4% from the same period last year, of which 15.104 million were 5G phones, down 0.1% from the same period last year, accounting for 72.2% of mobile phone shipments in the same period.

In terms of shipments in the third quarter, Samsung ranked first with 64 million units, while Apple ranked second with 51.9 million units. It was followed by 40.5 million Xiaomi, 25.9 million vivo and 25.8 million OPPO. Apple grew 1.6% over the same period, while Samsung fell 7.8% and Xiaomi fell 8.6%. Vivo and OPPO fell by more than 20 per cent respectively.

IDC said that although Android mobile phone brand factory and supply chain still hold a cautious wait-and-see view, under the circumstances that the supply chain has slowed for 1.5 years and inventory has been revised for 3 quarters, adding factors such as the normalization of China's mobile phone inventory, semiconductor shortage relief, new phones driving mobile phone specifications and other factors, the Q3-Q4 smartphone industry is expected to hit bottom this year.

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