The China Smartphone Market Declined in 2017

The China Smartphone Market Declined in 2017

Foto: Fotolia

According to preliminary data from IDC, the China smartphone market declined 15.7% year-over-year (YoY) in 2017Q4 and 4.9% for the whole of 2017.

Apple’s share increased YoY and QoQ. Although the iPhone X was available in short supply initially at launch in early November, the supply constraints for this model eased towards the end of the quarter. Apple’s ASP increased by 23.9% YoY in 2017Q4 largely due to the shipments of the iPhone X.

Even though Apple’s shipments faced a slight YoY decline, it remains the only company that dominates the >US$600 premium segment in China. In 2017Q4, Apple alone made up 85% of the overall shipments in that segment. It has not been easy for the Chinese smartphone companies to drive higher volumes at higher prices but Apple is still clearly the market leader in this space.

Huawei grew in 2017Q4 largely due to the strong shipment for both its Honor and Huawei branded phones in the <US$200 segment. Its main strength is that it has the Honor, Huawei and nova branded phones that covers the different segments of the market. The Singles’ Day sale also helped to push its Honor-branded phones in the market.

OPPO and vivo are focusing more on the mid-range segment, with a higher share of their portfolio focused on the mid-range segment compared to a year ago. The reduction in the number of OPPO and vivo models in the low-end segment also contributed to their YoY decline in 2017Q4.

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