After the decline experienced in 2017, Canalys expects “a negative impact on those Chinese vendors who have relied heavily on their domestic market.”
The largest market in the world for mobile devices that are smartphones , China, did not have a good 2017. In fact, last year suffered its first fall in terms of number of shipments.
According to data from Canalys, these shipments contracted by 4% to 459 million units . This contributed to a weak fourth quarter, with a fall in its case of 14%, with less than 113 million smartphones distributed between the months of October and December.
By companies, Huawei is the leader in shipments. In fact, it has not followed the general trend of the market and achieved an improvement of 9% to distribute more than 24 million smartphones in Q4, in what has been its best quarter in the national market. For all 2017 they were 90 million.
The firms that complete the top 3, OPPO and Vivo, registered respective declines of 16% and 7% in the fourth quarter, each contributing 19 million and 17 million shipments. Of course, they managed to grow in what is the year 2017 in full.
For its part, Apple moved Xioami to fifth place in the ranking of smart phone vendors in China.
Looking ahead to the next few months, Canalys believes that these companies will make it difficult for the rest. “The Chinese market decline will have a negative impact on those vendors Chinese have relied heavily on its domestic market” , says Hattie He, an analyst at consulting firm said. “It will affect its cash flow and profitability, which will limit expansion abroad and question future survival.”
“The threat to sellers like Gionee and Meizu is now closer than ever,” He said, giving names. “There is little room left for the smaller vendors . The main players will make aggressive plans to maintain or increase their market share “, he continues explaining, so ” we can expect a big reorganization of the market in China in 2018 “.