Canalys: Honor was the leading smartphone maker in China in the first quarter of this year

The smartphone market in China is evolving and several analysts report slightly different details. Shipments for the first quarter of the year were down 18% compared to the first quarter of 2021, which Canalys attributes to a market correction after last year’s “abnormal” first quarter.

“There is usually a sequential decline in demand and production in the first quarter, even though the Chinese smartphone market has been underperforming for nearly three years,” writes Canalys analyst Amber Liu, so these results should come as no surprise.

Analyst Toby Zhu warns smartphone makers to carefully plan inventory allocation and be prepared for store closures and logistical issues. The low-end market will be the hardest hit, so manufacturers will need to focus on mid-range and high-end models.

Right now the component shortage is easing, which is why the analyst advises suppliers to focus on improving their distribution channels and building customer loyalty. They should also maintain their supply chains and capacity allocations, otherwise they may face further shortages once consumer demand returns to normal.

Focusing on individual smartphone makers, Canalys reports that Honor is the largest brand in China for the first time in its short history with 15 million shipments out of a total of 75.6 million, representing a market share of 20%, triple the the one reached a year ago.

Apple’s shipments have also increased and now the iPhone maker is one step away from second place. Oppo (including OnePlus) barely managed to hold onto second place, but his brother alive did not fare as well and fell from first to fourth.