China’s smartphone market is expected to bounce back in the fourth quarter of 2023 and continue its improving streak into next year, posting its first annual growth in three years, according to market forecasts released this week.
China, the world’s largest smartphone market, is expected to ship 287 million units in 2024, a 3.6 per cent year on year increase, driven by an improving macroeconomy and consumer appetite for better gadgets, according to a report released by IDC on Thursday.
It would be the first year-on-year growth in the market since 2021. Shipment volumes in the following years are expected to remain stable, IDC added.
Chinese smartphone brands Xiaomi, Huawei in rare public spat over foldable patent
Chinese smartphone brands Xiaomi, Huawei in rare public spat over foldable patent
Consumers are increasingly eyeing upgrades to models with more storage, and fierce rivalry among domestic smartphone brands will push vendors to launch more competitive products next year, according to IDC.
China’s smartphone industry has been under pressure in recent years due to weaker consumer demand from macroeconomic headwinds and Covid-related disruptions. However, it showed signs of recovery in the fourth quarter thanks to the attention around Huawei’s latest Mate 60 series and promotions during the Singles’ Day shopping festival in November.
Fourth-quarter smartphone shipment volumes in China are likely to grow for the first time in 10 quarters, according to IDC.
Huawei surprised the industry in August when it announced the Mate 60 Pro, a handset equipped with an advanced made-in-China 5G chip, despite US tech sanctions intended to stifle its access to such technology.
Smartphone sales in China rose 11 per cent in the first four weeks of October compared with the same period last year, according to a report published by Counterpoint Research, with Huawei’s sales soaring 90 per cent in the same period.
Heading into 2024, the revival of the market will get a boost from strong growth in foldable handsets, whose annual shipments are expected to surge 53.2 per cent to almost 10 million units, according to the IDC report.
Foldable devices are likely to attract more adoption with more affordable prices as costs for key components including the hinge and screen continue to drop, IDC noted.
Artificial intelligence (AI) is likely to be more widely deployed on new generation smartphones, with Chinese brands touting the integration of the technology into their devices. The use of AI in smartphones has the potential to end the lack of innovation seen in the market in recent years, IDC said.