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China Smartphone Growth Decelerates at 2% in 2015, The Slowest To Date

By February 3, 2016 at 8:00 pm
iPhone 6 (Photo : Cole Bennetts/Getty Images News)

Only 427.6 million smartphones were shipped by phone vendors to China this year, indicating a slow two percent growth in 2015.

The growth is seen to be the slowest in the history of China imports, China Daily reported on Tuesday.

Xiaomi Corp. beats Huawei Technologies Co. Ltd. in the top spot with 15 percent market share last year. The latter was able to achieve 14.7 percent market share while Apple had 12.5 percent, which puts them in the no.3 spot.

The strongest growth was seen in the last quarter due to several release of new products, just in time for the holiday season. A climb of 113.6 million devices was shipped in the country between October and December, which is 5 percent higher than the number of the previous year.

"I think a 5 percent growth rate will be a good result, although the carriers are more positive," said research director of Canalys China, Nicole Peng.

"We will see China Mobile Ltd pushing devices compatible with Voiceover LTE technology," she added.

Peng further explained that the VoLTE will allow users to make calls only by using internet data so they will no longer pay for voice service. They will only pay the data consumed and how much traffic their call has made.

"Second, we expect consumers will continue to upgrade their existing smartphones to better-quality devices. This trend will also push the average sales prices up in China," the analyst said.

Top brands Xiaomi and Huawei already announced their upcoming phones that will feature new innovation. However, it also comes with a higher price. Last week, Xiaomi said they are to release their flagship phone, Mi5, this month.

The company's flagship phone is rumored to offer top-of-the-line performance and quality. It is reportedly being mass produced as of this moment.

"Huawei will need to fight with Xiaomi in China and expand in overseas markets to reach its shipment target this year," said Peng.

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