As a result of the feeble smartphone sales in their home market China and inflation-induced smartphone purchases reduction by overseas consumers, Chinese smartphone brands, to lower channel inventory levels, stayed conservative with their global shipments in the third quarter of 2022 with combined volumes amounting to around 140 million units in the quarter, down 5.5% sequentially and 18.2% on year, according to the latest figures from DIGITIMES Research's Smartphone Tracker.
Demand continues to be weak in the fourth quarter. With traditional peak season failing to boost sales, Chinese smartphone brands' combined global shipments in the fourth quarter will witness an expanded decline from a year ago.
The top-3 Chinese brands had mixed shipment performance in the third quarter, with Oppo enjoying an on-quarter increase, and both Xiaomi and Vivo a decline. The three brand vendors together contributed 65.4% of all smartphones shipped by China-based companies, up from the second quarter's 63.6%, the figures show.
With the Chinese government continues implementing lockdowns to stop the spreading of COVID-19, the country's economy and employment rate are worsening, prompting brand vendors to adopt a conservative attitude toward their shipments.
The rising inflation is undermining the disposable income of consumers in non-Chinese markets, thus seriously hurting sales in emerging markets and for mid-range to entry-level smartphones.