The arrival of new models from major brands such as Huawei and Xiaomi is contributing to the revival of the global smartphone market, which had been experiencing a decline. Zheshang Securities’ research indicates that the market is coming out of an adjustment phase, while Southwest Securities reports that key smartphone manufacturers and component suppliers have significantly reduced their inventory levels over the last six quarters. A healthy balance is currently being approached by these decreased inventories, indicating an approaching industry rebound.
Leading the Way in the Chinese Smartphone Industry Recovery are Xiaomi 14 and Huawei Mate 60
In the third quarter, Huatai Securities sees some improvement in several industries, including panels, passive components, storage, particular modules, and mobile chips. In the second part of the year, businesses in the smartphone industrial chain should benefit from this revival.
According to Canalys, the third quarter of 2023 saw a 5% year-over-year fall in the volume of shipments for smartphones in the Chinese market. But there are indications that this drop is decreasing, suggesting a steady recovery in the market.
The recent turnaround in the Chinese smartphone industry has been mostly attributed to Huawei’s Mate 60 and Xiaomi’s 14 series smartphones. Despite technological constraints in the US, the Mate 60 series has had a big impact and is now directly competing with Apple’s iPhone 15. With sales up 83% in October compared to the iPhone 15’s modest 11% growth, there was much talk about Huawei’s possible comeback on the international scene.
By contrast, Chinese firms like Xiaomi have been able to take advantage of the declining demand for Apple products in China. Following a June low, Xiaomi’s market valuation experienced an amazing rise of $20 billion, driven by the company’s successful smartphone releases, entry into the electric vehicle market, and diversification into other business sectors. Xiaomi’s stock gained 60% as a result of this rebound, topping the Hang Seng Tech Index.
Xiaomi’s achievements extend beyond the stock market. Since its release in October, the 14 series has been a customer favorite, with over a million orders placed. Analysts highlight Xiaomi’s potential for expansion in the AIoT, electric car business, and smartphone sector. This optimism is supported by statistics from Counterpoint Research, which shows Xiaomi to be the only top-five smartphone brand to achieve improvements in shipments in important regions such as China and India in the third quarter of 2023.
All things considered, the smartphone market seems to be starting to rebound thanks to these new product releases and tactical changes made by important companies. Companies in the sector must, however, keep putting their attention on innovation, improving product quality, and controlling supply chain and production efficiencies if they hope to see a long-term rebound.
