According to a report by DIGITIMES Research on the China smartphone industry, there is an anticipated 18.5% decline in smartphone shipments from China in the first quarter of 2024.
The companies in the Chinese smartphone market are cautious about their sales in the first quarter of 2024, when the nation celebrates Lunar New Year. This is because the slow season is starting for international markets.
In the fourth quarter of 2023, the combined shipments of the smartphone brands in China increased by 18.% year over year and by 11.2% sequentially. The report’s figures indicate that while international markets were experiencing a strong season, demand from emerging markets also increased, and Singles’ Day promotions helped boost sales in the Chinese market.
In the fourth quarter of 2023, smartphone vendors based in China shipped a total of 181.2 million units. With respect to the various market segments, the combined sequential shipment growth of the top three brands—Transsion, Oppo, and Xiaomi—was less than that of the non-top three manufacturers.
The top three brands’ combined shipment share fell to 58.3%. In contrast, the third-quarter results of 2023 were 59.4%.
The high rate of unemployment among China’s migrant workers and younger population is expected to continue into the first quarter of 2024. Regarding the economic outlook, the public is gloomy.
China’s suppliers are cautious about their shipments in the first quarter of 2024 for the domestic smartphone market, having ramped up inventory preparation for the country’s Singles’ Day promotions the previous quarter. In addition, foreign markets are expected to enter the slow season, which will cause the first-quarter 2024 smartphone shipments from China-based vendors to drop dramatically to 147.7 million units.