China smartphone market drops 10% in Q2 amid falling demand, lack of flagship products

News Wireless China 30 JUL 2021
China smartphone market drops 10% in Q2 amid falling demand, lack of flagship products

Around 79 million smartphones were shipped in China in the second quarter of 2021, which represents a decline of 10 percent year-on-year. The decrease was the result of the weaker-than-expected demand and a lack of flagship products that could trigger consumer interest, according to a report from IDC. Nevertheless, the first half of the year still saw a 7.1 percent year-on-year growth with 165 million shipments, mainly due to the low comparison base last year when the pandemic struck.

Top 5 smartphone company sales in Q2

The report further shows that Honor entered the Top 5 for the first time in China after it was divested from Huawei. Vivo gained the top spot in the quarter. Apple managed to achieve a higher market share in its off-season, mainly supported by its active promotions in the online shopping festival and at the expense of Huawei’s decline. Apple’s first 5G products also allowed it to increase its weighted ASPs by more than 20 percent from a year ago and led to year-pon-year growth of over 50 percent in terms of total shipment value.

Honor’s shipments plunged 46 percent year-on-year to 6.9 million in the three months ended 30 June 2021 from 12.9 million in the year-earlier period. Vivo ended the second quarter with a market share of 23.5 percent, and shipments of 18.6 million units, which represented an increase of 23 percent year-on-year.

Oppo had a market share of 20.9 percent and shipments of 16.5 million units, up 17.3 percent year-on-year. Xiaomi reached 13.4 million smartphone shipments in the second quarter, following a growth of 47 percent in shipments year-on-year, achieving a market share of 17 percent in China. Apple shipped 9.4 million smartphones in China in the three months to 30 June 2021, up 29.2 percent in the period, grabbing a market share of 8.8 percent.

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