China’s smartphone market rides an 8-month slump, but Huawei’s release of new 5G handsets offers hope for rest of year

China's smartphone market has been experiencing a slump for the past eight months. However, the release of new 5G handsets by Huawei Technologies offers a glimmer of hope. From January to August this year, China produced 679 million smartphones, a 7. 5 per cent decrease from the same period in 2022. Additionally, smartphone sales have also been on a downward trend, with a 4 per cent year-on-year drop in the first eight months of 2023. The second quarter of the year recorded the lowest sales since 2014, largely due to economic uncertainties. Despite these challenges, the market's outlook for the rest of 2023 could improve. This optimism is fueled by the release of new smartphones by Huawei and Apple, as well as the upcoming winter sales season. Huawei's new 5G handsets, the Mate 60 Pro series, have instilled confidence in the market. Sales of these new phones are expected to reach between five to six million units by the end of this year. Huawei's smartphone sales have already seen a 41 per cent increase from the same period last year. In late August, Huawei launched a presales campaign for its new Mate 60 Pro 5G handset, followed by another for its top-of-the-line Mate 60 Pro+ smartphone a week later. Meanwhile, Apple's new iPhone 15 series has also been well-received, with long queues observed at stores in China.