China Q3 Smartphone Shipments Fall 15.4% as Huawei Extends Market Lead

China's Smartphone Market Shrinks Again

China's smartphone shipments in the third quarter fell 15.4% from a year earlier to 57.9 million units, research firm IDC said on Tuesday. The decline comes amid weak consumer spending in the country, and follows pressure over previous quarters from rising prices for memory chips and other components.

Huawei Leads as Rivals Lose Ground

Huawei was the only major vendor to post double-digit growth. The company shipped 12.2 million units and led the market with a 21% share, IDC data showed. Apple was second with 17.8%, though its shipments in China fell 4.3%. Chinese rivals Oppo, Vivo and Xiaomi recorded shipment declines of 17.6%, 24.9% and 20.4% respectively.

Higher Component Costs Push Up Prices

Phone makers have been hit over the past few quarters by rising prices for memory chips and other components, and vendors have been passing the higher costs on to consumers, said Arthur Guo, a senior analyst at IDC. Retail prices have risen even as shipments shrink. IDC said Huawei's broad product lineup and relatively modest price increases helped it extend its run this year. Apple's new iPhones sold better than expected, but having fewer models this year weighed on its shipments.

Honor Points to Possible Rebound

Honor was the only leading brand whose shipments grew from the previous quarter, which IDC said suggested a possible rebound for the vendor.

Sources: Reuters Via Kelo · Reuters · Techmeme