China’s smartphone market is no longer developing

According to new figures released today, China’s smartphone market is no longer developing after it watched its first annual reduction in shipments during 2017.

The script was on the wall with a market decline first noted in Q2 but this is the first time a fall has been standing over a twelve-month time. That’s according to data from analyst firm Canalys which announced that total smartphone shipments lowered to four percent year-on-year to reach 459 million units in 2017.

In particular, the numbers in Q4 were reduced to 14 percent on one year back with 113 million units shipped.
Huawei extended its stunning growth spurt with 24 million shipments in the final quarter of 2017, growing its numbers nine percent over the market, despite the  evidence of buyer saturation.

According to Canalys, Oppo and Vivo, the Sister companies, have exploded on to the global stage with powerful sales in appearing markets in Asia, but in China, their numbers down 16 percent and 7 percent respectively, with 19 million and 17 million shipments.

Ultimately, the launch of the iPhone X and iPhone 8 assisted Apple pip Xiaomi to fourth position with 13 million shipments in Q4 2017.

Slowing progress at home has prompted Chinese phone brands to glance overseas, with many turning to India where they have long beaten out the local competition and nascent markets like Indonesia, which could progress remarkably.

In particular, Xiaomi which defeat Samsung to the top spot in India in Q4, has also made moves into Russia, Spain, Mexico and parts of Africa too.
The U.S. has proven a strong market to break. Xiaomi has sold accessories there for some period, but it is still to make the leap of smartphones in spite of many public declarations of intent.

Those that have been more aggressive have met hard pushback. The second-largest U.S. carrier,AT&T canceled plans to carry the Huawei Mate 10 Pro next reports of force from the government. There are also gossip that Verizon is facing stress over its plan to store the device, which has previously seen its launch pushed back from an actual summer timeline.

Huawei instead plans to sell the Mate 10 Pro unlocked and it recruited Wonder Woman actress Gal Gadot to front its campaign as its “Chief Experience Officer.” But transporter deals stay a key way to reach users without an upfront price that can near the quadruple digits. Huawei has distribution with key retailers like Best Buy and Amazon, but the company eventually won’t penetrate the market the way it desires without that extra push.

Featured Image: Russell Monk/Getty Images

 

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