The smartphone market has been in decline for some time now and China is no exception. Canalys revealed that the largest smartphone market saw 5% fewer shipments (66.7 million) in the third quarter of 2023, compared to the same three-month period last year (69.8 million). However, things are finally starting to improve as shipments are higher than in the second quarter.
Honor managed to reach the top of the market in mainland China in a tight competition that saw a difference of 2.7 million units between the first and fifth largest supplier, Xiaomi.
Honor gained sales momentum through the X50 series, which was billed as an improvement in durability. Oppo (along with OnePlus) remained second, while Apple came in third place thanks to the launch of the new iPhone 15 series.
| Agency | Third quarter ’23 shipments in millions |
Q3 ’23 Market share |
Q3 ’22 shipments in millions |
Q3 ’22 Market share |
Annual growth |
| Honor | 11.8 | 18% | 12.0 | 17% | -1% |
| Oppo | 10.9 | 16% | 12.1 | 17% | -10% |
| Apple | 10.6 | 16% | 11.3 | 16% | -6% |
| I live | 10.4 | 16% | 14.1 | 20% | -26% |
| Xiaomi | 9.1 | 14% | 9.0 | 13% | 0% |
| Others | 13.9 | 21% | 11.4 | 16% | 21% |
| Total | 66.7 | 100% | 69.8 | 100% | -5% |
Analysts pointed out that Honor and Oppo offer digital financial tools for distributors, while Xiaomi allows partners to purchase Mi Stores, optimize resource allocation and even expand them.
Closer relationships between sellers and resellers are the next big thing, especially after declining demand and inventory risks starting in 2022. Collaborations are now at all levels, from macro-level strategy to daily operations, added Amber Liu , head of research at Canalys.
Demand is expected to increase gradually, after bottoming in the second quarter of 2023. Companies will proactively expand product portfolios and accelerate the frequency of updates to “spur consumer upgrades and brand changes,” he predicted Toby Zhu, senior analyst at Canalys.
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