China’s smartphone market has seen a 14.7 per cent decline in sales over the second quarter of 2022, with COVID lockdowns dampening demand.

In context, global smartphone shipments declined 8.7 per cent.

Once thriving Chinese phone giants such as Xiaomi, OPPO, and vivo all suffered dramatic year-on-year sales drops, while budget phone marker Honor took advantage of the tight economic conditions to flood the market with its low-end smartphones, shipping 13.1 million during the quarter – the most of any company.

“Chinese consumers are holding back spending on smartphones,” Toby Zhu, an analyst for research firm Canalys, said in a separate report.

“The nationwide outbreak of COVID-19 has caused the government to impose strict lockdowns in major Chinese cities, such as Shanghai, Shenzhen and Beijing. Given the domestic economic downturn, people are worried about falling disposable income and unemployment. Fragile consumer sentiment has put pressure on vendors trying to grow.”

Canalys predicts that full-year shipments could end up “well below 300 million units”, which would be the lowest year for smartphone shipments since 2012.

Foldables were the only phones to buck the Chinese market’s overall “weak momentum” during the first half of 2022, according to the IDC. Foldable sales grew by 70 per cent year-on-year, to surpass 1.1 million shipments.

Huawei is the clear leader in the Chinese foldable market with more than 63 per cent share, with OPPO commanding close to 20 per cent.

Samsung managed to grab 9.3 per cent, despite the Galaxy Z Flip3 and Z Fold3 being at the end of their product cycle.

“The COVID outbreak and the lack of product upgrades in the mid-range and high-end segments restrained consumers’ willingness to spend,” said Xi Wang, Research Manager for Client System Research at IDC China.

“Nevertheless, the favorable growth of foldables shows that product innovation is still able to make consumers open their wallets.”