China’s Smartphone Market Booms in January 2024 but Experiences Decline in February; Analysts Predict Challenges Ahead for Foreign Brands

In January 2024, China’s smartphone market experienced a significant growth of 61.4%, with total shipments rising to 29.5 million units. Local brands dominated the market, accounting for about 83% of total shipments, while foreign products such as Apple’s iPhone accounted for only about 2.4 million units, a decrease of just over 31.7%. However, in February, the smartphone market experienced a decline after positive growth in January. According to the Chinese Academy of Information and Communication Technologies, smartphone shipments fell by over 30% year-on-year to a total of 14 million units.

When looking at the first two months of 2024, total smartphone shipments rose only slightly by 12.5% to 43.6 million units, with no particular growth recorded for any brand or model. This represents a significant challenge for all major players in the industry as demand continues to decline and rapidly changing market dynamics make it difficult to maintain market share.

Analysts like Kuo Ming-Chi of TF International Securities predict that iPhone demand in China will continue to fall in the coming year, with unit sales down by approximately 24% year-on-year in the first six weeks of 2024 alone. This trend represents a significant challenge for foreign brands trying to maintain their presence in one of the most competitive environments in the world.

Innovative and adaptive strategies will be necessary for all major players in the industry if they hope to survive and succeed in this rapidly changing landscape. It remains to be seen how each brand will navigate these challenges and what impact they will have on the overall smartphone market in China and beyond.