IDC: China’s smartphone shipments fell 5.4% year-on-year in the first half.


[Abstract] IDC said that in the future, the healthy operation of terminal sales and the guidance of consumers’choices in the initial stage of 4G-5G handover should be the focus of attention.
According to IDC’s latest quarterly mobile phone tracking report, shipments in China’s smartphone market in the second quarter of 2019 were about 97.9 million units, down 6.1% from the same period last year. Overall shipments in the first half of 2019 were about 180 million units, down 5.4% from the same period last year.
IDC believes that in the second quarter and the first half of the year, the pace of new product release and delivery of most manufacturers has moved forward. Huawei’s investment in the domestic market has increased, and its performance slightly exceeds expectations from the perspective of shipment volume. In the future, the benign operation of terminal sales and the guidance of consumers’choices in the initial stage of 4G-5G handover are the key points that need to be paid attention to.
Since late May, the overseas market has been blocked, but for the domestic market, Huawei has begun to increase its investment rapidly by virtue of its existing brand advantages. At the channel level, Huawei’s penetration and influence in the domestic market, especially in the 4-6 market, has been continuously enhanced by introducing new agents and putting more manpower into the terminal. At the product level, the P30 series and the Glory 20 series in June have laid a good foundation for the photographic function, especially the deepening of night scenes, and the previous generation products. Word of mouth has become an important force driving Huawei’s domestic market share to a new high.
Shipments declined in this quarter. No new flagship products were released by vivo in this quarter. It enriches the configuration of high-end product lines in the domestic market and expands the coverage of price segments by supplementing X-series models and new S-series. In addition to Y series, vivo has become another important series in the mainstream price segment market.
There was also a slight decline in the quarter. Mainstream price segment market A9 series has good feedback after listing. Compared with previous R series, the new Reno series can cover the price segment market from mid-end to high-end more comprehensively through various types of configuration. However, the overall performance of the new Reno series is not as good as the R15 Series in the same period last year due to the penetration of Huawei Nova series and other competitors in the 4-6 level market. Columns drive OPPO up against the trend.
In the second quarter, the ranking maintained the fourth place in China, down 19.3% year-on-year. In addition to the impact of the continued adjustment of the internal organizational structure, another factor was the release of millet 8 in the second quarter last year, while this year’s annual flagship aircraft was released as early as the first quarter, resulting in a decline due to differences in the delivery rhythm. At the same time, channel segregation and positioning among millet product series, transition and switching between new and old products, and management of off-line channel order are still the parts that need to be optimized in the future.
Through many rounds of price adjustment and the promotion investment of “618” in the online market, the shipment volume is gradually promoted. In the second quarter, Apple’s domestic shipments fell by a narrower margin than in the previous quarter. And the market share is flat year on year.
Looking at the overall market in the second quarter and the first half of this year, Wang Xi, IDC China Research Manager, pointed out that the overall market performance was slightly better than expected from the perspective of shipment volume, but it should be noted that domestic users’switching cycle is still not shortened. Whether the domestic mobile phone market can recover in the second half and in the future depends first on the channel. Does the circulation of stock and terminal sales be benign? At the same time, the formal issuance of 5G commercial licenses in China and the first 5G terminals which will enter the market will gradually turn consumers’attention to 5G. Therefore, in the initial stage of 4G and 5G handover, until the next 5G mobile phones gradually fall into the mainstream price segment, the guidance of consumer choice is more important.