Xiaomi bucks trend of contracting China smartphone market in third quarter: Counterpoint

30-Oct-2020 Intellasia | Reuters | 6:02 AM Print This Post

China’s smartphone market continued its steady contraction in the third quarter, with shipments declining 14 percent year-on-year, research firm Counterpoint reported on Friday.

Xiaomi Corp 1810.HK was the only brand to see growth in the quarter, with sales in China up 8 percent year-on-year. Its overall market share rose to 11 percent from 9 percent in the same period last year. Counterpoint attributed the performance to aggressive promotions as the company celebrated its 10th anniversary in August.

Apple Inc AAPL.O and Huawei Technologies Co Ltd both saw sales decline, breaking a growth streak that lasted several quarters.

Apple’s sales in China fell 7%, while Huawei’s dropped 3%. Their overall shares of the market, however, remained relatively stable, with Apple at 8 percent and Huawei at 45%.

Both companies launched new flagship devices in October with analysts expecting strong demand. The iPhone 11 was the quarter’s best-selling phone, according to Counterpoint, despite not having 5G.

Uncertainty remains about Huawei’s ability to capture that demand, as restrictions imposed on the company by the US crimp its supply of chips and other components.

Richard Yu, CEO of Huawei’s consumer business unit, said over the summer that the firm would no longer be able to produce its high-end line of Kirin chipsets starting this September.

https://uk.reuters.com/article/us-china-smartphones/xiaomi-bucks-trend-of-contracting-china-smartphone-market-in-third-quarter-counterpoint-idUSKBN27E1NC

 

Category: China

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