Chinese original equipment manufacturers (OEMs) recorded an 11.8 percent year-on-year decline in local device shipments over the second quarter of the year, the latest market study conducted by DigiTimes Research suggests. Total device shipments in the Far Eastern country amounted to 94.1 million in Q2 2017, essentially being identical to the volume recorded in the first quarter of the year. Despite the current stagnation and the fact that local OEMs were shipping more devices over this period last year, China's smartphone shipments still account for nearly 29 percentage points of total worldwide shipments, DigiTimes Research said.
Industry watchers believe that this trend is likely to continue in the near future, noting how a year-on-year decline should also be expected in the fourth quarter of the year. However, the current quarter should at least lead to a quarterly shipment increase due to the fact that major OEMs like Huawei, Vivo, and OPPO have all increased their component orders to a significant degree, sources with knowledge of the matter said, with DigiTimes estimating that a quarter-on-quarter shipment jump of 20 percentage points is to be expected for the current period. Industry analysts believe that the circumstances which led to the current state of affairs are multifaceted, noting how phone makers may have opted to decrease their shipment volumes to account for their stacked inventories which were filled in previous quarters and pointing out how local wireless carriers are currently underperforming on multiple fronts and are partially responsible for the lower handset demand in China.
Not all major phone vendors in the Far Eastern country are equally affected by the decrease in shipments, though the overall balance of market share in China remains unchanged, with Huawei still leading the smartphone segment and being followed by Xiaomi, Vivo, Oppo, and Apple. Xiaomi managed to almost double its shipments over the three-month period ending June 30 and recent reports indicate that some smaller players in China like Samsung are also doing reasonably well and are showing signs of recovering their operations and seizing a more sizeable portion of the market in the near future. The upcoming holiday period will likely see all local OEMs increase their global shipments, though it remains to be seen how they perform in their home country.