East Asia HUAWEI LEADS IN THE CHINESE SMARTPHONE MARKET FOR THE FIRST TWO WEEKS OF 2024

[Beijingwalker]

Source : https://www.gizchina.com/2024/02/04/huawei-chinese-smartphone-market-2024/

HUAWEI LEADS IN THE CHINESE SMARTPHONE MARKET FOR THE FIRST TWO WEEKS OF 2024​

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EFE UDIN FEBRUARY 4, 2024



Huawei, the Chinese tech giant, has made a significant resurgence in the Chinese smartphone market. A few days ago, we quoted an IDC report which said that Huawei made some gains in the Chinese smartphone market in the fourth quarter of 2023 with its shipments increasing by 36.2%. This growth positioned Huawei as the fourth-largest smartphone vendor in China. The Chinese brand now has a market share of 13.9%, up from 10.3% in the same period a year ago. It appears that the company is not slowing down from its blistering performance in Q4 2023. According to Counterpoint Research, Huawei secured the top position in terms of smartphone sales during the first two weeks of 2024.

Huawei’s sales share has been declining since the imposition of U.S. sanctions in 2019. This climb marks the first time that the company will be on top of the Chinese mobile phone market in several quarters. This achievement marks a remarkable recovery for the company. The company’s growth has been attributed to the success of its new smartphones, such as the Mate 60 Pro, which has contributed to its strong sales performance.

MARKET PERFORMANCE AND GROWTH​

The Huawei Mate 60 series, powered by its self-developed Kirin 9000S chip, is a key driver of Huawei’s recent success, the report said. In addition, its strong brand loyalty and the successful launch of the HarmonyOS operating system have also helped it.

The report also stated that China’s high-end smartphone market will grow by 27% in 2023. Apple maintained its market leadership with its outstanding performance in the first half of 2023. However, starting from the third quarter of 2023, Apple’s market share will begin to be eroded by Huawei and other Chinese brands. The agency also expects Chinese brands to continue to make efforts in the high-end market.

In addition, despite Huawei’s strong comeback, market competition remains fierce. Chinese brands such as Xiaomi, OPPO, and vivo are also constantly launching new models in the high-end market, challenging international giants such as Apple and Samsung. A previous Canalys report showed that mainland China shipped 73.9 million smartphones in Q4 2023, with Huawei increasing by 47% and returning to the top four.

RECOVERY AND RESURGENCE​

Huawei’s recovery in the Chinese smartphone market has been remarkable, with the company experiencing a significant resurgence following a period of decline. The company’s growth has outpaced that of Apple, making it the fastest-growing smartphone maker in China in the third quarter of 2023, according to Counterpoint Research.

Huawei’s recovery and resurgence have been influenced by various factors, including its technological advancements, global market dynamics, and geopolitical developments. Despite facing challenges such as tech restrictions and competition from other companies like Apple, Huawei has been on the road to recovery.

The company has focused on improving its hardware and keeping prices competitive, which has positioned it as a strong competitor in the global market. Also, the loosening of tech restrictions in China has created opportunities for the recovery of tech companies, including Huawei. The resurgence of China’s Belt and Road Initiative (BRI) and its reorientation towards a ‘Digital Silk Road’ have also played a role in Huawei’s recovery, as the initiative involves significant investments in information and communication technology, offering alternatives to Chinese 5G network infrastructure.
https://www.gizchina.com/2024/02/03/chinese-smartphone-market-huawei-apple-shipping/
Furthermore, Huawei’s recovery is intertwined with the broader geopolitical landscape, including the dynamics of the global tech industry and the competition among major powers. The company’s resilience and recovery are indicative of its ability to navigate these complex dynamics and adapt to changing circumstances.

FORECASTS AND PROJECTIONS​

According to market forecasts, China’s smartphone market is expected to ship 287 million units in 2024, a 3.6% year-on-year increase, driven by an improving macroeconomy and consumer appetite for better gadgets. This growth is expected to be driven by consumers’ increasing interest in upgrading their smartphones and the fierce rivalry among domestic brands, which will push vendors to launch more competitive products.

In 2023, Huawei expected a 9% revenue growth, with revenue exceeding 700 billion yuan ($98.5 billion). This forecast indicated a significant rebound for Huawei after facing challenges due to US sanctions. The company’s smartphone shipments surged, contributing to the overall growth of the Chinese smartphone market. Huawei’s strategic focus has become more refined. It aims to compete in the premium segment of the smartphone market, particularly in China. The company also aimed to re-enter the 5G smartphone market by the end of 2023, as it planned to procure 5G chips domestically.

Despite facing challenges, Huawei has set ambitious shipment forecasts. As of 2023, Huawei remains a key player in the smartphone industry. Its strategic decisions and forecasts keep shaping its position in the market. The smartphone industry itself is expected to continue growing. The Asia Pacific region will account for the largest market share in 2024 according to forecasts

FINAL WORDS​

Huawei’s leading position in the Chinese smartphone market in the first two weeks of 2024 reflects the company’s remarkable recovery. Huawei’s resurgence in the Chinese smartphone market showcases a remarkable turnaround. It defies the challenges posed by U.S. sanctions and a previous decline in market share. The company’s aggressive push in Q4 2023 helped the company in no small way. The success of the Mate 60 Pro series and the HarmonyOS, highlights a strategic focus on innovation and brand loyalty. This recovery reflects Huawei’s ability to adapt to evolving market dynamics and leverage its technological prowess.

As Huawei anticipates a promising future, the high-end smartphone market in China is expected to grow substantially. This means that Huawei will have to compete against both domestic and international rivals. The forecasts of increased smartphone shipments in 2024 further indicate a positive trajectory for the Chinese tech giant. The multifaceted factors contributing to Huawei’s resurgence, include improved hardware and competitive pricing. It also includes geopolitical shifts and a rebounding macroeconomy. These position the company as a key player in the evolving smartphone industry landscape.

 

[Beijingwalker]

Huawei reclaims top spot in China’s smartphone sales ranking, its first time back since company was added to US blacklist​

• US-blacklisted Huawei led China’s smartphones sales in the initial two weeks of this year, according to research firm Counterpoint
• That resurgence was jump-started by Huawei’s surprise release last August of its Mate 60 Pro 5G smartphone

Published: 8:00pm, 5 Feb, 2024

Huawei Technologies climbed back to the No 1 spot of China’s smartphone market in the initial two weeks of this year, according to a report by research firm Counterpoint, putting more pressure on 2023 industry leader Apple and major mainland rivals in the world’s largest handset market.

This marks the first time Huawei reclaimed the top smartphone sales ranking on the mainland since Washington imposed sanctions on the Shenzhen-based company when it was added to the US trade blacklist in May 2019, which crippled the firm’s once-lucrative handset business, according to the report on Sunday by Counterpoint research analysts Ivan Lam and Zhang Mengmeng.

That resurgence was jump-started by Huawei’s surprise release last August of its Mate 60 Pro 5G smartphone – powered by its advanced Kirin 9000S processor, which was locally developed in spite of US tech sanctions – as well as the firm’s Android replacement mobile platform HarmonyOS, the report said. It also pointed out that brand loyalty among Chinese consumers greatly contributed to the popularity of Huawei’s new 5G handsets.

The Counterpoint report, however, indicated that Huawei still faced cutthroat competition on the mainland against Apple and major domestic handset vendors that include Xiaomi, Oppo and Vivo, which continue to launch high-end smartphone models.

A shopper holds up two display units of Huawei Technologies’ 5G Mate 60 Pro smartphone at an electronics store in Xian, capital of northwestern Shaanxi province, on September 9, 2023. Photo: Shutterstock

Robust domestic demand for Huawei’s new 5G smartphone models, years after its release of the Mate 40 series in October 2020, reflect improved consumer appetite for handset upgrades amid Beijing’s efforts to ease mounting pressure from debt, deflation and weak confidence.

China’s smartphone industry showed signs of recovery in 2023, when shipments grew 6.5 per cent year on year to 289 million units, according to data from the China Academy of Information and Communications Technology. Domestic brands made up 231 million units, or around 80 per cent, of total shipments.

The mainland’s high-end handset segment sales also grew 37 per cent last year, despite overall weakness in the global smartphone industry, Counterpoint data showed. While Apple led that market segment in the country in the first half of last year, the iPhone maker’s sales started to get squeezed in the third quarter amid a strong push by Chinese vendors led by Huawei

The rise of Huawei smartphone sales on the mainland early this year, followed a decline in iPhone sales in the fourth quarter.

Apple, however, still ranked as mainland China’s leading smartphone vendor in the fourth quarter and the whole of last year, according to a report by tech research firm IDC.

Last week, Apple reported a nearly 13 per cent drop in revenue from its Greater China region – covering the mainland, Hong Kong, Macau and Taiwan – in the December quarter, while sales rose in its other operating regions.

Apple’s weekly smartphone shipments in China have declined by 30 to 40 per cent in recent weeks, according to a recent research note by Kuo Ming-chi, a TF International Securities analyst known for his accurate assessment of Apple’s business. Kuo expected this downward trend to continue this year.

“The main reason for the decline is the return of Huawei and the fact that foldable phones have gradually become the first choice for high-end users in the Chinese market,” Kuo wrote in the note.

The global premium smartphone market, where handsets are priced from US$600, saw Apple remain the “undisputed leader” last year with a dominant 71 per cent share, according to a Counterpoint report last month.

Still, Apple’s share in that segment was down from 75 per cent in 2022 amid the resurgence of Huawei on the mainland and the gains made by Samsung Electronics, the report said.

In a rare move, Apple last month offered Chinese consumers discounts of up to 800 yuan (US$113) on a range of products, from iPhones to MacBooks, ahead of the Lunar New Year to fend off competition from the likes of Xiaomi and Honor, which also cut their handset prices.

Huawei, however, did not pursue a similar strategy, as it faced a supply shortage of its Mate 60 Pro owing to production constraints.

Huawei climbs back to No 1 spot in China smartphone sales

Huawei’s return to form in the world’s largest smartphone market was jump-started by the surprise release last August of its Mate 60 Pro 5G handset.

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[Deleted due to Error (Muji Iqbal)]

I may buy a Hwawei phone over an Iphone if it s more affordable than American sh/it.