Tuesday, July 23, 2024
Smartphone news

Huawei and Xiaomi lead China smartphone market’s double-digit rebound

By Vlad Savov

Huawei Technologies Co. and Xiaomi Corp. led a resurgence in China’s smartphone market, which shook off oversupply issues and an ailing economy to register double-digit growth in October.

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Phone sales in the world’s biggest mobile market were up 11% in the first four weeks of last month compared to the same period a year ago, according to Counterpoint Research data. Huawei improved by 83%, while Beijing-based Xiaomi was up by a third. Apple Inc.’s latest iPhone has had an unusually muted debut in China this year, and domestic rivals are capitalizing with a wide range of new products.

Shenzhen-based Huawei accounted for the bulk of the growth with its new Mate 60 series of phones, Counterpoint said. The electronics maker sparked global attention and consumer demand by introducing handsets powered by a novel made-in-China 5G chip, which it also added to an upgraded foldable model in the Mate X5.

“The clear standout in October has been Huawei with its turnaround on the back of its Mate 60 series devices. Growth has been stellar with its new launch marketing and strong media coverage around its ‘Made in China’ chipset,” said analyst Archie Zhang. “Demand continues to be high double-digits and we’re also seeing a halo effect, with other models from the vendor performing well.”

China’s mobile industry had been mired in a prolonged contraction, following an inventory glut built up a year ago in the midst of Covid Zero lockdowns. Contract chipmakers Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. have in recent weeks said they see that inventory adjustment coming to an end and orders returning to growth. South Korea, home to Samsung and SK Hynix Inc., on Tuesday reported memory exports returned to growth for the first time in 16 months.

The problem for Chinese phone makers has now inverted, according to Counterpoint, as Huawei is struggling to produce enough units to satisfy unexpectedly high demand. Xiaomi’s 14 series has received over one million orders since its late-October launch, and the company has gained about $20 billion in market value since a June low on excitement over its latest handsets as well as forays into electric vehicles and other businesses.

The Chinese companies’ success could suggest challenges for Apple, the world’s most valuable company. It has gotten almost 20% of its revenue from greater China in recent quarters. 


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