Huawei makes a comeback in China as market hits all-time low, says Canalys

According to the recent report published by Canalys, smartphone sales in China exhibited a 5% decrease in the last quarter and for the entire calendar year of 2023. This decline represents a continuation of the significant drop seen in 2022, which was considered the worst in a decade.

During the final quarter of 2023, there was a slight recovery, with a mere 1% decrease, totaling 73.9 million units. Remarkably, Huawei, which was referred to as the “dark horse,” ascended to the fourth position and almost doubled its shipments compared to the same period in the previous year.

Furthermore, the release of the iPhone 15 series during the holiday season initiated a significant spike in Apple’s sales, allowing it to claim the top spot for the first time. As a result, there was a 6% increase in the year-over-year growth for the American company.

Throughout 2023, Apple’s mild 1% increase led the company to secure the leading position. At the same time, other local competitors such as Vivo, Oppo, Honor, and Xiaomi experienced a decline in their shipments, enabling Apple to establish a significant lead.

Huawei’s resurgence into the Top 5 in China was largely driven by the introduction of the Mate 60 Pro, featuring a domestically manufactured Kirin 9000S chipset.

Despite its usage of the five-year-old 7nm process technology, the chip was able to meet the local consumers’ demand for software and hardware innovation. This is especially notable as it was found to be slower than its 2020 predecessor in benchmarks.

The anticipation for 2024 is a predicted “moderate recovery” in the smartphone market. Research Manager Amber Liu emphasized how Huawei and other companies plan to intensify market competition through investments in generative AI services, hardware, and infrastructure.

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