Chinese Smartphone Market Grows in Q3 2024; Vivo Leads with Strong Performance

In Q3 2024, the Chinese smartphone market—the largest single smartphone market worldwide—posted year-over-year growth with 65.7 million units shipped. This marks the third consecutive quarter of recovery, driven by a steady replacement cycle, back-to-school promotions, and a range of new product launches. While the market's positive trend is expected to continue, there are concerns that major vendors may need to adjust inventories in upcoming quarters.

OS Landscape: Harmony OS Expands Share

Apple's iOS share in China remained steady, while Android’s share slipped slightly as Huawei’s Harmony OS continued to gain traction. Released in October 2024, Huawei’s Harmony OS Next introduced a proprietary kernel, no longer supporting Android apps, marking a significant evolution that helped boost Harmony OS to a higher market share.

Vendor Dynamics: Vivo in the Lead, Rising Competition

Vivo led the market, securing top position with strong year-over-year growth, driven by demand across different segments. The success of its IQOO series in mid-range, Y series in budget, and X series in premium categories, alongside a partnership with China Mobile, helped propel its shipments.

Xiaomi followed closely, tying with OPPO/OnePlus in market share. Xiaomi’s growth was fueled by refreshed Redmi and Mi series products, as well as new foldable models targeting premium consumers. The company also bolstered its offline distribution network, leveraging new synergies from its automotive business.

OPPO and OnePlus, combined, held a similar market share but saw a continued year-over-year decline. OPPO focused on the youth-oriented A3 series and the popular Reno 12, while OnePlus faced challenges in the competitive online segment.

Honor and Apple rounded out the top players, with Honor experiencing a decline due to competitive pressures and cost challenges. The brand is actively preparing for an IPO, supported by investments from key telecom and channel partners. Apple, on the other hand, saw modest growth through aggressive promotions for the iPhone 15 and legacy models, though geopolitical issues and premium competition from domestic brands remain concerns.

Huawei's Strong Growth, Amid a Shifting Market

Huawei matched Apple in market share with notable year-over-year growth. Despite the underperformance of the Pura series, the Mate 60 series maintained strong demand. New foldable releases, such as the Nova Flip and Mate XT, garnered attention but faced price-related challenges. Expectations are high for the upcoming Mate 70 series, though Huawei faces hurdles from a slowing economy and competition in the premium market.

Market Concentration and Future Outlook

The top six vendors in China now account for a dominant market share, further squeezing smaller brands and new entrants. Although consolidation has stabilized the market, possible inventory adjustments may influence performance in the coming quarters. The ongoing interaction between consumer demand, product innovation, and vendor strategies will be essential as China’s smartphone market continues to evolve.