China’s smartphone market continued to decline in Q2 with shipments falling 5.9 per cent year-on-year, but the average selling price (ASP) rising 15 per cent, data from IDC showed.
Total shipments in the quarter fell to 105 million units, but IDC noted the pace of decline narrowed compared with Q1 as channel activity normalised and new products were released.
Huawei cemented its position in the $600 to $800 segment with its P20 Pro series, while Apple moved to even higher price bands, helping Huawei build a high profile, the research company said.
Xi Wang, IDC China’s senior market analyst, noted the higher ASP showed consumers are willing to pay more for a phone targeted to their needs, including better cameras and emerging categories such as gaming.
IDC believes market leaders will continue to gain share, marginalising smaller players. Large vendors have been transforming their focus from single channels and segments to multiple channel and segments focus. Their heavy investments in China make it more difficult for a smaller player to compete, it said.
The research company expects a relatively flat market for China in the full year, but noted exchange rate and trade war risks could result in shipments dropping in the second half.