Shipments of smartphone out of China have collapsed 21% to 91 million units. Since 2013, shipments have exceeded 100 million units every quarter.
Eight of the top ten smartphone vendors have incurred a decline in sales. Apple’s standing of number 4 in vendor sales was replaced by Xiaomi, Xiaomi was the only company to show growth. Its shipments grew to 12 million units. Huawei remained the top vendor by shipping over 21 million units. Currently, the top four vendors are Huawei, Oppo, Vivo and Xiaomi, all are domestic vendors. Together they accounted for more than 73% of all Chinese shipments.
Although sales are maintaining in the east, the future of smartphone sales are a major concern because a downturn could have a serious economic impact on China. They smartphone industry is pervasive in China and has transformed the nature of their manufacturing base. They are somewhat reliant on the industry as a main source of revenue.
Considering that the main market for smartphones is the young generation and that age group has been severely impacted by the global economic slowing. The future outlook for an upturn in sales is unlikely.