Huawei Effect: China’s October Smartphone Sales Soar with Huawei Leading the Way with an Impressive 83% Increase in Sales
"The clear standout in October has been Huawei, with its turnaround on the back of its Mate 60 series devices. Growth has been stellar."
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Huawei's robust sales performance played a key role in driving an 11% increase in China's overall smartphone shipments in October, as revealed by data from research firm Counterpoint on Tuesday. This suggests positive indications of a recovery in China's mobile market, which has been facing challenges.
During the initial four weeks of October, Huawei emerged as a significant contributor to the average year-on-year growth, with its sales experiencing an impressive 83% surge, as indicated by a statement from the firm.
Counterpoint data reveals that Xiaomi witnessed a notable 33% uptick in smartphone sales in October. However, specific details regarding Apple's performance during the same period were not provided.
In August, Huawei unveiled its Mate 60 smartphone series, which is powered by a self-developed advanced chip. Analysts have interpreted this move as a strategic response to U.S. sanctions, which aim to impede the shipment of certain chips to China.
"The clear standout in October has been Huawei, with its turnaround on the back of its Mate 60 series devices. Growth has been stellar," said Counterpoint China analyst Archie Zhang.
"Demand continues to be high double-digits and we’re also seeing a halo effect, with other models from the vendor performing well."
However, Counterpoint cautioned that Huawei might face lingering bottlenecks, potentially encountering specific production issues despite its recent successes.
"Huawei’s ability to scale up to this new normal will be a major determinant not just for their own growth, but for the broader market,” said Ivan Lam, senior Counterpoint analyst.
According to Counterpoint, China's smartphone market has witnessed declining sales over multiple quarters, with a 3% drop reported in the quarter ending June.
Analysts anticipate a potential rebound in the market, as research firm IDC predicts unspecified year-on-year sales growth in the fourth quarter. This follows ten consecutive quarters of declining shipments.
