Smartphone Sales in China Hit Nearly a Decade Low in Q2 2022: Counterpoint

Smartphone sales in China have fell by 14.2 percent YoY in second quarter of 2022.

Smartphone Sales in China Hit Nearly a Decade Low in Q2 2022: Counterpoint

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Mengmeng Zhang, stated that during the quarter, Vivo maintained its leadership

  • Realme has reportedly seen a decrease of 44.3 percent YoY
  • Apple is said to have performed relatively good
  • Huawei leads the foldable phone segment

Smartphone sales in China have slid by 14.2 percent year-on-year (YoY) in the second quarter 2022, according to Counterpoint Research's Market Pulse Service. Honor is said to have doubled their handset sales in the same period, making it the only brand that reported a YoY increase. Chinese phone brand, Realme, reportedly saw a decrease of 44.3 percent YoY. Compared to the first quarter of 2020, the sales in China are 12.6 percent lower. The report added that last time the China's smartphone sales were lower than this was in the fourth quarter of 2012.

According to a report by Counterpoint Research's Market Pulse Service, the smartphone sales in China have hit nearly a decade low. The YoY sales in the South-East Asian country have dipped 14.2 percent in the second quarter of this year. The last time the sales were below this mark was in the fourth quarter of 2012, when the iPhone 5 was launched. In this quarter, the sales have reportedly plummeted 12.6 percent in comparison to the first quarter of 2020.

According to Counterpoint's Senior Analyst Ivan Lam, given the low sales volume number for Q2 (second quarter) 2022, the smartphone sales are expected to rebound in the next quarter. He also said that it might be difficult to make the situation better in the second half when compared to last year.

Although, the sector as a whole has witnessed a decline, Honor is the only brand that saw a YoY increase in smartphone sales. According to the report, this can be attributed to the fact that the company has expanded its offline presence in China. The company is said to have doubled their YoY smartphone sales in the quarter.

Research analyst at the company, Mengmeng Zhang, stated that during the quarter, Vivo maintained its leadership. "The mid-to-high-end S12 series helped Vivo grab a good share in the $250-$399 (roughly Rs. 19,900 – Rs. 31,800) segment. Sub-brand iQOO also received positive market feedback, especially from younger customers,” he said. As per the report, Realme saw a drop of 44.3 percent in sales in China.

Meanwhile, sales of Apple have been reported to be relatively good bolstered by the iPhone 13 series in Q2 2022 in China. Xiaomi witnessed an increase in sales in June because of Redmi K50 and Note 11 series.

Counterpoint report mentioned that the foldable smartphone sales in the first half of 2022 have surpassed that of 2021. Huawei lead the segment in H2 2022, followed by Samsung and Oppo.

Why is Oppo making strange choices with its flagship Reno series? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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