China demonstrated an initial recovery in the global smartphone market following the onset of the COVID-19 pandemic, leading the way among major economies. The country’s swift response with strict lockdown protocols enabled it to overcome the initial wave of the virus and see sales begin to normalize before other regions.

However, during the third quarter, a downturn became apparent. Recent data released by Canalys indicates an 8% decrease in sales compared to the previous quarter, and a 15% reduction when compared to the same period last year. The firm attributes a significant portion of this slowdown to the ongoing difficulties experienced by Huawei, the previously dominant market leader, as a result of restrictions imposed by the U.S. government. These issues created a ripple effect, negatively impacting the performance of the second-largest players, Vivo and Oppo.

Huawei experienced an 18% decline in shipments within Mainland China compared to the previous year. Vivo and Oppo recorded comparable decreases of 13% and 18%, respectively. Xiaomi, however, managed to improve its position, securing third place with a year-over-year gain of 19% according to the data. Apple’s performance remained relatively stable, despite the delayed release of the iPhone 12. The continued challenges faced by Huawei may open opportunities for its competitors to gain market share.

Analyst Nicole Peng highlighted the potential benefits for Apple with the introduction of its 5G devices: “The iPhone 12 series is expected to significantly boost Apple’s performance in Mainland China. With the majority of smartphones in China now supporting 5G technology, Apple is addressing a key deficiency, and the anticipated demand for its new 5G-compatible lineup will likely be substantial.”