China’s smartphone sales fall 5% in Q1 2023: Report

China’s smartphone sales fell 5 per cent (year-on-year) in Q1 2023, reaching the lowest Q1 sales figure since 2014, a report said on Thursday. According to Counterpoint Research, this was an improvement from the double-digit (year-over-year) declines seen in previous quarters as well as a sign of bottoming out. As the country emerged from the Covid-19 pandemic, Q1 sales increased by 10 per cent (quarter-on-quarter). In the first quarter (Q1) of 2023, Apple had the largest share of the Chinese smartphone market, increasing sales by 6 per cent (year-on-year) in a declining market. Apple’s market share in Q1 was 19.9 per cent, its highest since 2014, and its sales were also the highest since 2015. In terms of market share, OPPO and vivo tied in Q1, with sales shares of 18.3 per cent and 17.7 per cent, respectively. Moreover, the report said that the rapid growth of OnePlus in the Chinese smartphone market following its high-profile return to the market was the highlight of Q1. With frequent and even aggressive launches of the OnePlus 11 and OnePlus Ace 2 and Ace 2V, its sales increased 227 per cent (year-on-year) in Q1. Huawei’s smartphone sales increased 41 per cent (year-on-year) from a low base. Its mid-end Nova 10 series and premium Mate 50 series found popularity even though they still cannot support 5G. While the start of the year’s sales improved the mood, market participants remain cautious about increasing production, according to the report. Despite this caution, the report stated that the market will recover further in Q2. China’s first-quarter GDP increased by 4.5 per cent (year-on-year), exceeding expectations, while retail sales increased by 5.8 per cent. These encouraging figures suggest that household demand in the country is increasing.