Handset sales in China and Taiwan saw sequential falls of nearly 20% and 55%, respectively, in February 2022. Local retail channels are all pinning their hopes on the new iPhone SE that hit market shelves recently.
Due to traditional low season effects following the Lunar New Year holidays, phone vendors in Taiwan and China saw substantial declines in February sales. Taiwan's handset shipments dropped to 396,000 units in February from 494,000 units in January, with Apple's iPhone 13 series and Samsung Electronics' Galaxy A52s and A32 5G being among the most sold smartphone models on the market.
Smartphone shipments in China also shrank to 14.55 million units in February from 32.37 million units in January. The country's smartphone shipments in the first two months of 2022 had decreased by 23% compared to the same period a year ago.
Market observers attributed the significant handset shipment drops in Taiwan and China to a combination of reasons, including the upstream component shortages and the lack of 5G killer applications. Although observers generally expect the handset market to perform better in March, they said the rebound might not be very strong.
Pre-orders and sales of Samsung's Galaxy S21 series have been strong in the Taiwan market after the models were launched in February. This is expected to drive up high-end smartphone sales in the country. Meanwhile, with Apple's recent introduction of midrange iPhone SE and the upcoming launch of new products by Xiaomi, Oppo, Realme, and Vivo, smartphone demand is expected to rise in March and April.
In China, domestic smartphone brand vendors continue to dominate the market. Although Apple currently accounts for over 10% of the handset market share thanks to its iPhone 13 series, the iPhone SE's 4.7-inch display may not attract much interest from Chinese consumers, which may reduce Apple's overall market share in China, observers said.
