Smartphone vendors are facing significant challenges in China phone market, according to research reports from IDC and Canalys.
IDC said 285.8 million smartphones shipped in China in 2022, down 13.2 percent year-on-year to below the 300 million mark for the first time in ten years. In 4Q22, the market declined 12.6 percent to 72.9 million units.
“The historically low shipments raise an alarm bell for smartphone vendors to rethink how to build a more sustainable business model and a more targeted marketing strategy,” said Will Wong, Senior Research Manager for Client Devices at IDC Asia/Pacific.
China’s smartphone market finished 2022 with an annual shipment of 287 million units, a year-on-year decrease of 14 percent, Canalys said.
Vendors will be cautious about the market in 2023. For example, Honor which enjoyed rapid growth last year, will eye IoT products instead of growing shipments or offline channels. Oppo will focus on deepening investments into its in-house R&D while trying to maintain its market share with a prudent strategy.
“We expect the supply chain to finally stabilize in 2023 as the pandemic control policy is no longer in operation, and the overall smartphone market will likely grow slightly year-on-year as business activities and confidence return,” said Canalys Analyst Amber Liu.
