China's Smartphone Market Shrank 8% in Q1 2018 While Apple's iPhone Sales beat the Trend Spectacularly
In a new report published today, it was revealed that Chinese smartphone shipments slowed in Q1 2018 with YoY decline of 8% and sequential decline of 21%. The top five brands captured a record 82% of the market with other OEMs struggling to grow. While Xiaomi was the fastest growing brand with 51% YoY growth, Apple clocked in at a spectacular 32% growth which flies in the face of countless U.S. brokerage firms preaching doom and gloom. If Apple smashed the trend in China, will Apple announce better than expected results on May 1st?
James Yan, Research Director at Counterpoint Research commented, "Xiaomi was the fastest growing brand in China during the quarter. The growth was driven by Xiaomi's expansion in the offline segment with aggressive promotions. It also refreshed its Redmi Note series and now has a very strong product portfolio in the mid segment, giving more choice to budget-conscious consumers.
Apple grew 32% YoY in China due to strong performance of its iPhone X. While the promotions were not aggressive for the iPhone X, except in operator channels, its demand remains healthy in the market."
Commenting on Apple's performance and opportunity, Associate Director, Tarun Pathak, highlighted, "Apple still holds a large user base in China who haven't upgraded in the past two years. Apple is now back to YoY growth in the first quarter since Q1 2015, which is an indication that its older generation iPhone user base is now upgrading. This can set the set the tone for the vendor's full year outlook. Furthermore, as Apple enters its seasonal cycle, promotions in the coming quarters will further drive upgrades."
About Making Comments on our Site: Patently Apple reserves the right to post, dismiss or edit any comments. Those using abusive language or negative behavior will result in being blacklisted on Disqus.