What are diverse strategies of smartphone vendors in China?

Smartphone vendors in China have adopted diverse strategies to navigate a recovering market and fierce competition, resulting in a shipment growth of 4 percent, Canalys report indicated.

Vendors in smartphone market China Canalys report
Vendors in smartphone market China Canalys report

China’s smartphone market grew by 4 percent – shipping 285 million units in 2024. In Q4 2024, smartphone shipments grew by 5 percent to 77.4 million units.

Strategies

Vivo led the market with a 17 percent share, leveraging robust marketing efforts, partnerships with operators, and a broad product portfolio targeting entry-level to high-end segments. Vivo shipped 49.3 million units in 2024.

Vivo leveraged online and offline channels, partnerships with operators, and marketing strategies to strengthen its position.

Huawei, ranking second with a 37 percent growth, has capitalized on advancements in proprietary technologies, including its HarmonyOS NEXT and in-house chip development, to strengthen its high-end appeal. Huawei shipped 46 million units.

Apple, maintaining its position as a key player, focused on seasonal promotions, trade-in programs, and interest-free installment plans to enhance user retention and competitiveness. However, its shipments declined by 25 percent in Q4 2024 due to intensified competition from domestic flagship devices. Apple shipped 42.9 million units in 2024.

OPPO and HONOR, with a 15 percent market share each, emphasized affordable premium designs and durability to encourage upgrades in the mass market. Oppo shipped 42.7 million units in 2024. HONOR shipped 42.2 million units in 2024.

China smartphone market main vendors in 2024
China smartphone market main vendors in 2024

Xiaomi demonstrated the most dynamic growth, achieving a 29 percent increase in Q4 shipments. Its focus on ecosystem synergies — bolstered by EV products and home appliances — helped stabilize its shipment cadence and regain consumer confidence. Xiaomi’s advancements in HyperOS and foldable devices further solidified its appeal across price segments.

The high-end smartphone market segment flourished with innovations such as GenAI integration, foldable designs, and slimmer, lighter devices, driving upgrades among tech-savvy consumers. Government subsidies and a stable macroeconomic environment provided further support, enabling vendors to refine channel strategies and product offerings, Amber Liu, Research Manager at Canalys, said.

Looking forward to 2025, vendors are preparing for an anticipated increase in smartphone shipments, expected to exceed 290 million units. Enhanced product experiences, including longer battery life, innovative form factors, and AI-powered operating systems, are set to attract consumers across all price tiers, reinforcing a structurally healthy and competitive market environment.

Baburajan Kizhakedath

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