FILE PHOTO: A woman checks a Huawei Nova Flip foldable smartphone displayed at a Huawei flagship store, near an Apple store in Beijing, China September 10, 2024. REUTERS/Florence Lo/File Photo
FILE PHOTO: A woman checks a Huawei Nova Flip foldable smartphone displayed at a Huawei flagship store, near an Apple store in Beijing, China September 10, 2024. REUTERS/Florence Lo/File Photo
Home » News » Business & Economy » China smartphone market reverses to decline in Q2 after six quarters of growth
Business & Economy

China smartphone market reverses to decline in Q2 after six quarters of growth

By Che Pan and Casey Hall

BEIJING (Reuters) -China’s smartphone market contracted in the second quarter after six straight quarters of growth, with shipments declining at four of the top five brands due to weaker consumer demand, IDC data showed on Tuesday.

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Apple, ranked fifth in China’s smartphone market, saw its shipments decline 1.3% year-on-year to 9.6 million units in the second quarter, a smaller drop compared with the 9% decline in the first quarter, thanks to price adjustments made to specific iPhone 16 and 16 Pro variants eligible for government subsidies.

Apple’s market share rose to 13.9% in the June quarter, up from 13.7% in the March quarter. It was Apple’s eighth straight quarter of decline.

Huawei reclaimed the top spot after more than four years, with a market share of 18.1%. The Shenzhen-based tech giant shipped 12.5 million phones in the second quarter, down 3.4% year-on-year.

Xiaomi, which ranks fourth, is the only smartphone maker to record growth in shipments in the last quarter. Vivo, which ranks second, saw shipments decline 10.1%, the steepest among the top five selling brands.

China’s smartphone shipments overall dropped 4.0% year-on-year to 69 million units in the second quarter as growth momentum driven by the government subsidies subdued amid broader weakness.

“The broader economic environment presents ongoing challenges, with consumer confidence remaining subdued,” said Arthur Guo, senior research analyst at IDC.

A significant uplift in smartphone demand is unlikely in the immediate term, and the market will navigate a more complex landscape in the second half of the year, he added.

(Reporting by Beijing Newsroom; Editing by Andrew Heavens and Louise Heavens)

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