China Smartphone Market Rebounds in 2024

After two years of decline, China’s smartphone market experienced a notable recovery in 2024, with shipments growing by 5.6% year-over-year, reaching approximately 286 million units, according to IDC.

This rebound marked a significant shift driven by pent-up demand for device upgrades, government consumption subsidies, and technological advancements in areas like generative AI, screens, and battery performance.

However, the market recovery was uneven, with some brands capitalizing on the opportunity better than others. As the country heads into 2025, policymakers and brands alike are positioning themselves to sustain this growth.

Market Leaders and Competitive Dynamics

The 2024 landscape saw vivo, Huawei, and Apple secure the top three spots, with each brand adopting distinct strategies to navigate a competitive and shifting market.

vivo: The Market Leader with Broad Coverage

Maintaining its position as China’s top smartphone brand in 2024, vivo’s success stemmed from a comprehensive product lineup that spanned all price segments.

The company leveraged its innovative technology-driven strategy, enhancing both hardware and software capabilities while maintaining close collaboration with upstream suppliers and channel partners.

This ecosystem-driven approach allowed vivo to cater to diverse consumer needs, from entry-level to premium offerings.

Huawei: A Remarkable Comeback

Huawei’s resurgence was the highlight of 2024, with a staggering 50% increase in shipments, making it the second-largest player in the Chinese market, according to IDC’s report.

The company’s ability to secure domestic chip supplies played a pivotal role in reviving its nova and Enjoy series, broadening its appeal to a larger audience. Additionally, the rollout of the HarmonyOS Next system strengthened Huawei’s ecosystem integration, positioning it as a critical player in the multi-device ecosystem.

According to Canalys, Huawei achieved a 37% year-over-year growth in overall shipments, underscoring its robust recovery.

Apple: High-End Dominance, But Declining Overall

Despite its dominance in the premium market, where it held 60% of sales for devices priced above $800, Apple’s overall market share shrank, according to IDC’s analysis.

The iPhone 16 series struggled to gain traction, contributing to a 17% drop in shipments for the year.

Both IDC and Canalys highlighted Apple’s challenges in retaining competitiveness due to delayed AI feature rollouts and ineffective channel reforms.

The company’s future growth in China now hinges on its upcoming releases, particularly the rumored iPhone 16E and revamped iPhone 17 series.