China smartphone sales fall 12% YoY in Q3 2022

With China’s economic growth and consumption remaining sluggish, the country’s smartphone sales in Q3 2022 fell 12.4% YoY, according to Counterpoint’s Market Pulse Service. However, the market saw a seasonal rise of 4.9% QoQ, shaking off the COVID-19 lockdown impact on major cities in Q2 2022. Meanwhile, the strong demand for the iPhone 14 Pro and Pro Max models helped boost the market in the quarter.

In Q3 2022, vivo (including iQOO) retained the first spot with a market share of 19.9%. The brand launched more new smartphones in the quarter than other OEMs. OPPO (including OnePlus) took the second spot with an 18% share while HONOR was third with a 17.2% share.

Major OEMs embraced July-August summer sales to clear inventories after the 618 online shopping festival. Smartphone brands are preparing for a busier Q4 with more new offerings. This will lift the market from Q3 and help it register a smaller YoY decrease in Q4.

Having said that, smartphone sales in 2022 will likely register a double-digit YoY decline, according to Counterpoint’s estimates.

Commenting on the competitive landscape, Research Analyst Mengmeng Zhang said, “vivo, OPPO and HONOR remained the top three smartphone OEMs in China in Q3 2022. But vivo and OPPO saw sales declines of more than 20% YoY while HONOR rose 2.5% YoY. vivo and OPPO’s decline could be attributed to the China smartphone market plunge and also the fast comeback of HONOR. Huawei also turned in an upbeat performance of 4.8% YoY growth. Its Nova 10 series and Enjoy 50 were popular among consumers despite the lack of 5G support.”

Zhang added, “The online market also saw changes. OPPO had tasked OnePlus to expand in the online segment, and the OnePlus Ace Pro has made it happen. OnePlus total sales in China increased 9.6% YoY and 44.3% QoQ.”

Research Analyst Archie Zhang said, “Apple’s sales saw a 6.8% YoY increase in Q3 2022. This can be mostly credited to the strong demand for the iPhone 14 Pro and Pro Max models and the new iPhone series being launched a week earlier than usual. Besides, the American brand hasn’t faced a severe supply issue as it did in 2021.” According to Counterpoint’s China Weekly Data, the demand for the iPhone 14 Pro and Pro Max has remained strong going into October.

CT Bureau