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The report points out that although the market shrinks 7% in the second quarter of 2019, the Chinese mainland mobile phone market has achieved 25% growth in the second quarter of 2020, with sales exceeding 90 million.
Canalys pointed out that China's smartphone market is expected to recover from strong growth and rebound strongly. "Huawei, dominated by its domestic market, shipped 40.2 million units in the second quarter of 2020 and expanded its market share to as high as 44%. Vivo and oppo ranked second and third respectively, with an increase of 23% and 16% respectively. Xiaomi ranked fourth, with a shipment of 9.3 million units, an increase of 21% month on month."
"Mature e-commerce channels are crucial to the recovery of China's smartphone market," said Jason low, a senior analyst at canalys. "Due to the strong marketing promotion and sales incentives provided by major e-commerce companies such as Alibaba, JD and pinduoduo in this quarter, the performance of smartphone suppliers in the second quarter was still stronger than expected despite the weak consumption in physical channels. High end brands such as Huawei and apple continued to invest online and benefited from the growing e-commerce shopping."
The report points out that 5g smart phones are booming. The shipment volume in China in the second quarter of 2020 was 39 million, an increase of 260% over the first quarter.
Louis Liu, research analyst at canalys, said: "Local brands are promoting the penetration of 5g into their product portfolio to support operators' efforts to transition existing 4G users to 5g, which has exceeded 100 million users in July. Huawei aims to become a 5g brand in China. Its 5g product portfolio exceeded 60% of its total shipments in the second quarter. At the same time, nearly one-third of the shipments of competitors such as vivo, oppo and Xiaomi were 5g Mobile phones. This year, few new 4G models appear in the roadmap of any major manufacturer in the second half of the year. Therefore, with fewer and fewer opportunities for consumers to choose 4G when replacing smartphones, 5g adoption will accelerate. "