Huawei and Xiaomi are at the forefront of the recovery of China’s smartphone market, which has finally overcome oversupply problems and the weak economy, posting double-digit percentage growth in October. Smartphone sales in the world’s largest market rose 11% in the first four weeks of last month compared to the same period last year, according to Counterpoint Research.
Analysts estimate that sales of Huawei smartphones rose 83% in the period, and Xiaomi increased the volume of devices sold by around a third. It is noted that the recent debut of the iPhone 15 in China was not accompanied by strong sales, while Apple’s local competitors are successfully benefiting from a wide range of new products that have been launched. According to Counterpoint, the main driver of growth in the Chinese smartphone market was Huawei from Shenzhen. At the beginning of the year, the provider introduced the Mate 60 family, the first 5G flagship smartphone in a long time. They captured the world’s attention and caused consumer demand to grow.
“The clear winner in October was Huawei, which turned the tide with the launch of the Mate 60 series smartphones. The growth has been nothing short of incredible, thanks to a successful marketing campaign and widespread media coverage of its Chinese-made microprocessor. Demand continues to grow in double digits and we also see a halo effect: other models from this manufacturer are also doing well.”says analyst Archie Zhang.
Since last year, China’s mobile market has been in a prolonged slump due to oversupply and relatively weak consumer demand. It seems that the situation is gradually changing. Recently, contract semiconductor manufacturers such as TSMC of Taiwan and Samsung of South Korea announced that orders had returned to growth in recent weeks.
Given the success of the Mate 60 series smartphones, Huawei is struggling to produce enough devices to meet high demand. At the same time, the sales volume of the Xiaomi 14 series smartphones introduced at the end of October exceeded 1 million units. Against this backdrop, Xiaomi’s market value has increased by around $20 billion since June, when it fell to its lowest level. The success of local manufacturers could spell trouble for Apple, as the US company has generated around 20% of its sales from the Chinese market in recent quarters.