Vivo tops China’s growing smartphone market

In terms of manufacturer rankings, Vivo reclaimed the number one spot by shipping 13.1 million units and capturing a 19% market share. This is a 15% increase in growth over the previous year, and Canalys attributes it to strong performance in offline channels and ‘robust online sales during the "618" e-commerce festival.’ 

Oppo retained second position with 11.3 million units shipped, helped along by the launch of its new Reno 12 series, and Honor came in third with shipments of 10.7 million units, clocking a 4% YoY increase.

Other notable mentioned include fourth place Huawei which shipped 10.6 million units (though Canalys notes its growth has slowed slightly) followed by Xiaomi which enjoyed a 17% YoY bump which propelled it back into the top five with10 million units shipped. Marketing buzz around Xiaomi's first electric car helped contribute to sales of its K70 and flagship 14 series, says the report.

Meanwhile Apple ranked sixth with a market share of 14%, a 2% YoY drop.

"The growth in the second quarter signals a gradual market normalization, but we still expect a modest single-digit recovery for the year," said Canalys Senior Analyst Toby Zhu. "Three key trends will impact the market landscape in the second half of 2024. Firstly, the market will be closely watching Huawei's upcoming launch of HarmonyOS Next, as the vendor aims to position it as a third major mobile OS alongside Android and iOS.

“Additionally, local players are investing in AI infrastructure, developing in-house models, and creating AI applications as key competitive advantages to disrupt the high-end segment. Lastly, the intense domestic competition is also driving overseas expansion, with Chinese brands expected to achieve new milestones in international markets throughout the rest of 2024." 

Counterpoint numbers for the previous quarter put the Chinese smartphone market at 1.5% growth, marking the second consecutive quarter of positive YoY growth and which would make this the third. The big story that quarter was that Apple’s market share tanked by 19.1% YoY, while Huawei clocked 69.7% YoY growth.