China smartphone shipments decline for a sixth consecutive quarter

what happened

China’s smartphone shipments decreased 15.4% year on year in the third quarter, reaching 57.9 million units. Research firm IDC reported the figures on Tuesday in a report by Che Pan and Farah Master. The market has now contracted for six consecutive quarters.

Huawei was the sole major manufacturer to deliver double-digit expansion. It shipped 12.2 million devices and held a 21% market share, ahead of Apple at 17.8%. Apple’s shipments in China nevertheless declined 4.3%.

Volumes at Oppo, Vivo and Xiaomi fell 17.6%, 24.9% and 20.4%, respectively. IDC attributed the broader setback to subdued consumer spending in China. Phone makers have also faced higher costs for memory chips and other components, with some of that pressure reflected in higher retail prices.

Arthur Guo, a senior IDC analyst, said Huawei benefited from an extensive product range and relatively limited price increases. Apple’s latest phones performed above expectations, but a smaller lineup this year reduced its shipment total. Honor was the only leading brand to grow from the previous quarter, which IDC said could point to a potential recovery.

why it matters

The figures highlight pressure on China’s consumer demand and manufacturers’ margins: component inflation is reaching shoppers even as overall volumes decline, while Huawei gains share.

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