Huawei surge propels China's smartphone market to 11pc growth in October

China's smartphone market witnessed a notable resurgence in October, with an 11 per cent increase in total shipments, driven largely by a remarkable 83 per cent surge in sales for Huawei, according to data from research firm Counterpoint.

Reuters reported that the positive momentum suggests a potential recovery in China's mobile market, which has faced challenges in recent quarters. Huawei's strong performance, especially with its Mate 60 series devices, has been a key factor in this turnaround, with Counterpoint China analyst Archie Zhang noting, "Demand continues to be high double-digits, and we’re also seeing a halo effect, with other models from the vendor performing well."

Xiaomi also contributed to the overall growth, registering a 33 per cent increase in smartphone sales in October. While specific details about Apple's performance in the period were not provided, the data reflects a broader positive trend in China's smartphone landscape.

The surge in Huawei's sales is particularly striking; marking a shift from the challenges the company faced due to U.S. sanctions, with the launch of the Mate 60 series seen as a strategic move to counter chip-related restrictions.

Reuters quoted Ivan Lam, a senior Counterpoint analyst as saying, "Huawei’s ability to scale up to this new normal will be a major determinant not just for their own growth but for the broader market."

The stellar performance of Huawei and Xiaomi indicates a potential rebound in China's smartphone market, which has experienced a decline over multiple quarters.

In the quarter ending June, sales fell by 3 per cent, highlighting the challenges faced by the industry. The sustained growth observed in October aligns with expectations of a market recovery, with research firm IDC predicting unspecified year-on-year sales growth in the fourth quarter.

This positive outlook comes after ten consecutive quarters of falling shipments, signalling a potential turning point for the Chinese smartphone market. The data underscores the resilience and adaptability of key players like Huawei and Xiaomi in navigating market dynamics.

(With inputs from Reuters)

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