China's smartphone sales hit 10-year low with 13% YoY decline in 2022

China's smartphone sales saw a significant decline of 13 per cent in 2022, marking the largest drop in the sector over the past decade. The cautious spending habits of consumers is the main reason for the decline according to the market research firm IDC. The report suggests that the total number of smartphones shipped in China in 2022 was 286 million, a decrease from the 329 million shipped in the previous year. This resulted in the lowest annual sales volume since 2013 and the first time in nearly a decade that annual sales have dropped below 300 million.

Android smartphone maker Vivo emerged as the top-selling brand in 2022, with a market share of 18.6 per cent. However, their total shipments fell by 25.1 per cent year-on-year. Honor, another Chinese smartphone maker under the brand Huawei, ranked as the second best-selling brand, with shipments growing more than 34 per cent, despite starting from a low base. Apple and Oppo tied for third place in terms of best-selling phone brands. Apple's overall sales fell by 4.4 per cent year-on-year, which was a better performance compared to the market downturn.

In the fourth quarter of 2022, despite being the top-selling brand, iPhone sales were still down due to supply chain issues caused by worker unrest at Foxconn's plant in Zhengzhou and weaker than expected demand, according to the report. China's Covid-19 restrictions, implemented in several cities in the spring of 2022, had a significant impact on the country's economy, which saw one of its worst performances in nearly half a century last year.

The global trends in the smartphone market are also not very assuring. Global smartphone sales reached the mark of 1.2 billion, which is also the lowest since 2013, hinting at a broader trend. The global market has witnessed a drop of 11 per cent in YoY sales. 

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