The Chinese smartphone market
, once an El Dorado for investors and tech companies, has lost some of its appeal recently. The market has been decreasing in volume for six consecutive quarters (year-on-year) and is expected to lose more ground in 2019.
Maker of the iPhone, Apple, has been feeling the effects of the sluggish Chinese market, but so have domestic companies. Among the major players, smartphone makers Vivo, OPPO and Huawei have been growing their market share opposite the competition in 2018.
Longer replacement cycles and weak consumer spending are reasons why smartphone makers can’t sell more phones to Chinese consumers, according to analytics firm Strategy Analytics
. The trade war with the United States didn’t help Chinese tech companies either.Analyst IDC
is expecting the Chinese and global smartphone markets to flatten out during 2019 and pick back up by 2022
. They cite the launches of several high-end devices that are expected to have consumers willing to upgrade from existing phones. Foldables and 5G-networks are also expected to make Chinese consumers willing to spend on smartphones again.