According to a new analytical report this morning, China’s smartphone sales in Q3 2021 declined 9% YoY but increased 3% QoQ to reach 76.5 million units. Due to weak consumer demand and component shortages, especially 4G SoCs, the country’s smartphone market failed to see any major improvement in sales in Q3 2021.

While Apple's ranking stayed unchanged at fifth spot in Q3, Apple grew from 8% to 13% market share in the quarter and 48% year-over-year growth. Apple's unchanged status was due to HONORs dramatic rise in the quartr. Apple is expected to make great gains in Q4 due to the release of iPhone 13 unless component issues arise.

HONOR was the fastest growing brand in Q3 2021, outperforming the market with 96% QoQ growth in sales volume. HONOR has made a strong comeback since June and its market share has almost doubled from 7.7% in Q2 2021 to 14.7% in Q3 2021.

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Commenting on the overall Chinese smartphone market, Research Analyst Mengmeng Zhang said: "Although COVID-19 has been well contained in China due to its zero-tolerance approach, its economy has not come out unscathed, growing just 4.9% YoY in Q3 2021, compared to 7.9% YoY in Q2 2021. The country’s services sector also slowed sharply in August while showing a slight rebound in September. In the meantime, China’s smartphone market remained stagnant with demand mainly coming from replacement needs. Lack of new smartphone features also kept many consumers away."

Commenting on key vendors’ performances, Senior Research Analyst Ethan Qi said: "The overall smartphone market experienced further reshuffling in Q3 2021, factoring in HONOR’s comeback. vivo and OPPO continued to lead the market with 23% and 20% shares, respectively. HONOR’s share rose quickly to the third spot, marginally surpassing that of Xiaomi. Xiaomi’s position is expected to be challenged the most by HONOR as both OEMs have a higher sales contribution from online channels when compared to other major Chinese OEMs.

Sales of market leaders vivo and OPPO grew 21% YoY and 26% YoY, respectively. For more, read the full Counterpoint report.