Chinese smartphone market grew 0.8% year-over-year in the first quarter of 2017


According to the latest quarterly China mobile phone tracker report from International Data Corporation (IDC) on May 4, shipments in the Chinese smartphone market grew 0.8% year-over-year in the first quarter of 2017. Huawei delivered strong results with shipment of 20.8 million, up 25.5% from a year earlier and ranking No. 1 in the country.

The data show that in addition to Huawei’s growth, shipments of OPPO and VIVO also increased but Apple, Xiaomi and other brands saw sales decline, among which Apple suffered the largest slump, down 26.7% year-over-year. IDC expects overall growth in the Chinese smartphone market in 2017 to be lower than in 2016, which saw growth of 8.6%. The first half of the year will see a flat trend and growth will pick up in the second half.

IDC believes cyclical changes led to the slowdown in China’s smartphone market in the first quarter. Firstly, the overall market saw weakness in the quarter due to cyclicality, with the Spring Festival holiday season prompting a stagnation of shipments across channels. Secondly, as phone makers increased shipments in the fourth quarter of last year, pushing inventory to a higher level, in the first quarter they were actively cutting capacity and consequentially reduced new model launches. To clear inventory for upcoming Spring/Summer new product releases, vendors will digest existing models. Despite this, consumer demand for smartphones remains strong, especially for upgraded devices.


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