China’s smartphone market suffers a hard decline of more than 21% in the first quarter of 2018 on annual basis compared to last year.
According to the analysts, this is Chinese smartphone market’s biggest drop ever since the early period of 2012.
Canalys analyst Mo Jia said that Canalys had forecast the decline but the drop hits level beyond their predictions. He also said that annual declines have affected eight of the top 10 smartphone vendors except only Huawei and Xiaomi.
However, on Thursday the world’s largest smartphone manufacturer Samsung reported an increase of 52% quarterly earnings over the previous year.
Jia said that Huawei was sales climb 2% in shipments to 21 million units, Second-placed Oppo and third-placed Vivo saw shipments falling by about 10% with respectively 18 million and 15 million shipped units. Xiaomi was the only company to have the growing shipments with 37% jump to 12 million units.
Canalys predicts future growth as Oppo has launched the R15 and the R15 Pro, Huawei has released P20 series while Xiaomi is going to introduce the Mi7. Thanks to these new flagship phones those could help the smartphone market to pick up the growth again.
“New smartphones will definitely entice people to upgrade, but vendors are more careful of avoiding oversupply in the channel. China’s smartphone market may see a short period of stagnation as vendors refocus on research and development, relying on new use cases to excite refreshes rather than spending heavily on the channel and marketing,” said Jia.