2023
0
China Smartphones and Wearables Market Report 2023
2023-08-11T04:04:54+01:00
OX1158553
3695
165696
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Report
en_GB
“Consumer delays in smartphone replacement amid economic volatility and extended smartphone lifecycles are impacting China's smartphone market. In striving to create a premium image, domestic brands can strategically leverage sustainability…

China Smartphones and Wearables Market Report 2023

£ 3,695 (Excl.Tax)

Report Summary

“Consumer delays in smartphone replacement amid economic volatility and extended smartphone lifecycles are impacting China’s smartphone market. In striving to create a premium image, domestic brands can strategically leverage sustainability and cultural resonance to positively shape consumer perceptions. Meanwhile, wearables, which are currently considered non-essential and have low usage, can enrich their use cases by improving connectivity and providing valuable support in fitness scenarios as well as utilising the collected physical data for value-added applications.”
– Toby Xu, Research Analyst

Key issues covered in this Report

  • Consumers’ perceptions of different smartphone brands.
  • Marketing activities that can increase consumers’ favourability towards smartphone brands.
  • Consumers’ usage frequency of wearable devices.
  • Reason for using smartwatches/wristbands.
  • Usage scenarios of wearable devices consumers would be interested in.
  • Consumers’ attitudes towards smartphones and wearable devices.

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Covered in this Report
        • Executive Summary

            • The market
              • China’s smartphone market still struggling to recover from slump
                • Figure 1: Value and forecast of smartphone market, China, 2018-28
              • China’s wearables market is enduring difficulty
                • Figure 2: Value and forecast of wearables market, China, 2018-28
              • Smartphone brands focusing on high-end to stimulate demand
                • Rise of domestic display screens boosts competitiveness of local smartphone manufacturers
                  • Falling prices of storage lead to higher configuration and longer lifespan of smartphones
                    • Smartphone brands tapping into car-making business intensify mobile ecosystem competition
                      • Advanced generative AI is expected to bring innovative changes for mobile devices
                        • Domestic smartphone brands face setbacks in overseas market
                          • Companies and brands
                            • Apple
                              • Huawei
                                • Xiaomi
                                  • OPPO
                                    • vivo
                                      • Honor
                                        • Leveraging furry friends to connect with consumers
                                          • Using photography awards to build imaging culture
                                            • Marketing the human-centred side of wearables
                                              • Smartphone designs inspired by artistic aesthetics
                                                • Larger external screens bring more functionality to foldable phones
                                                  • TWS headphone case with display
                                                    • Smartwatches with integrated wireless earbuds
                                                      • Virtual reality devices are accelerating
                                                        • The consumer
                                                          • Apple maintains premium image while domestic brands haven’t shaken off stereotypes
                                                            • Figure 3: Smartphone brand image, 2023
                                                          • Consumers favour smartphone brands with positive impact on society
                                                            • Figure 4: Smartphone brand activities to increase consumer favourability, 2023
                                                          • TWS earbuds lead the way in ownership, and smartwatches are being used more frequently
                                                            • Figure 5: Usage frequency of wearable devices, 2023
                                                          • Managing personal health is still the main motivator
                                                            • Figure 6: Reasons for using smartwatches/wristbands, 2023
                                                          • Consumers demand more connectivity between wearables and other devices
                                                            • Figure 7: Interested usage scenarios of wearable devices, 2023
                                                          • Leveraging branding to differentiate in premium smartphone market while embracing the growing appeal of wearables
                                                            • Figure 8: Attitudes towards smartphones and wearables, 2023
                                                          • What we think
                                                          • Issues and Insights

                                                            • Delivering high-end value through sustainability and culture marketing
                                                                • Figure 9: Samsung’s Galaxy S23 series containing eco-friendly materials/ OPPO’s new smartphone campaign incorporating traditional culture, 2023
                                                              • Demonstrating value-added applications of data collected by wearables
                                                                • Figure 10: Professional healthcare service provided by Huawei wearable and PingAn Healthcare, 2023
                                                              • Exploring more usage scenarios of smartwatches in daily life through connectivity
                                                                  • Figure 11: Smartwatches with advanced connectivity capabilities by Huawei and OPPO, 2023
                                                                • Providing more support around exercise/fitness scenario
                                                                    • Figure 12: Running beam mode of Xiaomi Mi Band 8, 2023
                                                                • Market Size and Forecast

                                                                  • China’s smartphone market still struggling to recover from slump
                                                                    • Figure 13: Value and forecast of smartphone market, China, 2018-28
                                                                  • China’s wearables market is enduring difficulty
                                                                    • Figure 14: Value and forecast of wearables market, China, 2018-28
                                                                • Market Factors

                                                                  • Smartphone brands focusing on high-end to stimulate demand
                                                                    • Foldable flagship
                                                                      • Imaging flagship
                                                                        • Rise of domestic display screens boosts competitiveness of local smartphone manufacturers
                                                                          • Falling storage prices lead to higher configuration and longer lifespan of smartphones
                                                                            • Smartphone brands tapping into car-making business intensify mobile ecosystem competition
                                                                              • Advanced generative AI is expected to bring innovative changes for mobile devices
                                                                                • Domestic smartphone brands face setbacks in overseas market
                                                                                • Key Players’ Performance

                                                                                  • Apple
                                                                                    • Huawei
                                                                                      • Xiaomi
                                                                                        • OPPO
                                                                                          • vivo
                                                                                            • Honor
                                                                                            • Market Activities

                                                                                              • Leveraging furry friends to connect with consumers
                                                                                                • Figure 15: Marketing campaigns leveraging animals by Honor and Xiaomi, 2023
                                                                                              • Using photography awards to build imaging culture
                                                                                                • Figure 16: Honor and OPPO offer photography awards, 2023
                                                                                              • Marketing the human-centred side of wearables
                                                                                                • Figure 17: Heart-warming people-centric marketing campaigns by Nreal and OPPO, 2023
                                                                                            • New Product Trends

                                                                                              • Smartphone designs inspired by artistic aesthetics
                                                                                                • Figure 18: Smartphones with unique colour or design by Huawei and vivo, 2023
                                                                                              • Larger external screens bring more functionality to foldable phones
                                                                                                • Figure 19: Foldable smartphones with large external screens by vivo and OPPO, 2023
                                                                                              • TWS headphone case with display
                                                                                                • Figure 20: TWS earphone cases with displays by JBL and HP, 2023
                                                                                              • Smartwatches with integrated wireless earbuds
                                                                                                • Figure 21: 2 in 1 smartwatches by Huawei and Aipower, 2023
                                                                                              • Virtual reality devices are accelerating
                                                                                                • Figure 22: VR headset devices by Sony and Meta, 2023
                                                                                            • Smartphone Brand Image

                                                                                              • Apple maintains premium image
                                                                                                • Huawei leads in technical capability and credibility
                                                                                                  • Xiaomi hasn’t shaken off the “good value for money” label
                                                                                                    • OPPO and vivo continue to be perceived the same
                                                                                                      • Figure 23: Smartphone brand image, 2023
                                                                                                      • Figure 24: Correspondence analysis of smartphone brand image, 2023
                                                                                                    • Apple and Huawei’s premium brand image is more recognised by high earners
                                                                                                      • Figure 25: Smartphone brand image – premium, by monthly personal income, 2023
                                                                                                  • Smartphone Brand Activities to Increase Consumer Favourability

                                                                                                    • Consumers favour smartphone brands with positive impact on society
                                                                                                        • Figure 26: Smartphone brand activities to increase consumer favourability, 2023
                                                                                                      • Targeting young women with culture marketing, young men with IP co-branding
                                                                                                          • Figure 27: Smartphone brand activities to increase consumer favourability, by gender and age, 2023
                                                                                                        • Affluent young consumers value spokespersons and brand executives with enhancing favourable impressions
                                                                                                            • Figure 28: Smartphone brand activities to increase consumer favourability, respondents aged 18-29, by monthly personal income, 2023
                                                                                                          • Premium co-branding strategy appeals to affluent consumers in their 30s
                                                                                                            • Figure 29: Smartphone brand activities to increase consumer favourability, respondents aged 30-39, by monthly personal income, 2023
                                                                                                        • Usage Frequency of Wearable Devices

                                                                                                          • TWS earbuds lead the way in ownership, and smartwatches are being used more frequently
                                                                                                            • Figure 30: Usage frequency of wearable devices, 2023
                                                                                                            • Figure 31: Active usage among owners of specific wearable devices, 2023
                                                                                                          • Gen Z tend to be more active users of TWS earbuds
                                                                                                            • Figure 32: Active usage among owners of specific wearable devices, Gen Z vs total, 2023
                                                                                                          • Providing consumers in tier 2 or lower cities with more affordable and entertaining options
                                                                                                            • Figure 33: Ownership of wearable devices, by city tier, 2023
                                                                                                        • Reasons for Using Smartwatch/Wristband

                                                                                                          • Managing personal health is still the main motivator
                                                                                                            • Figure 34: Reasons for using smartwatches/wristbands, 2023
                                                                                                          • Marketing connectivity besides monitoring functions to reach more audiences
                                                                                                            • Figure 35: TURF analysis of reasons for using smartwatches/wristbands, 2023
                                                                                                          • Delivering diverse value for consumers
                                                                                                            • Figure 36: Repertoire analysis of reasons for using smartwatch/wristband, 2023
                                                                                                          • Young and elderly consumers show different usage patterns
                                                                                                            • Figure 37: Selected reasons for using smartwatch/wristband, by age, 2023
                                                                                                          • Young generations in tier 1 cities consider smart as trendy things
                                                                                                            • Figure 38: Selected reasons for using smartwatch/wristband among respondents aged 18-29, by city tier, 2023
                                                                                                          • Wearables that can be used independently of smartphones interest middle-aged consumers in tier 1 cities
                                                                                                            • Figure 39: Using smartwatch/wristband to replace smartphones in certain scenarios, respondents aged 30-49, by city tier, 2023
                                                                                                          • Professional support to affluent families in tier 2 or lower cities
                                                                                                            • Figure 40: Using smartwatch/wristband to better attend to the safety and health of family members, by city tier and monthly household income, 2023
                                                                                                          • Smartwatch can highlight connected scenarios to attract consumers
                                                                                                            • Figure 41: Reasons for using smartwatch/wristband, smartwatch owners vs smart wristband owners, 2023
                                                                                                            • Figure 42: Reasons for using smartwatch/wristband, high-frequency smartwatch users vs high-frequency smart wristband users vs total owners, 2023
                                                                                                        • Interested Usage Scenarios of Wearable Devices

                                                                                                          • Consumers demand more connectivity between wearables and other devices
                                                                                                            • Figure 43: Interested usage scenarios of wearable devices, 2023
                                                                                                            • Figure 44: TURF analysis of interested usage scenarios of wearable devices, 2023
                                                                                                          • Wearables offer pet owners a convenient alternative to smartphones
                                                                                                            • Figure 45: Selected interested usage scenarios of wearable devices, by living situation, 2023
                                                                                                          • Catering to the preferred usage scenarios of wearables for young consumers in different city tiers
                                                                                                            • Figure 46: Selected interested usage scenarios of wearable devices, respondents aged 18-29, by city tier, 2023
                                                                                                          • Potential of smartwatch as a key component in connectivity ecosystem
                                                                                                            • Figure 47: Interested usage scenarios of wearable devices, smartwatch owners vs non-smartwatch owners, 2023
                                                                                                          • Smart wristband owners seek practical value in data monitoring
                                                                                                            • Figure 48: Interested usage scenario of wearable devices, smart wristband owners vs non-owners of smart wristbands, 2023
                                                                                                        • Attitudes towards Smartphones and Wearables

                                                                                                          • Leveraging branding to differentiate in the premium market
                                                                                                            • Figure 49: Attitudes towards smartphones and wearables, 2023
                                                                                                          • Consumers value more natural and interactive control methods
                                                                                                            • Figure 50: Attitudes towards smartphones and wearables, 2023
                                                                                                          • Growing appeal of wearable technology in everyday life
                                                                                                            • Figure 51: Attitudes towards smartphone and wearable devices, 2023
                                                                                                          • Ecosystem and video contents affect consumers’ purchasing decisions
                                                                                                            • Figure 52: Attitudes towards smartphone and wearable devices, 2023
                                                                                                        • Appendix – Market Size and Forecast

                                                                                                            • Figure 53: Value and forecast of smartphone market, China, 2018-28
                                                                                                            • Figure 54: Value and forecast of wearables market, China, 2018-28
                                                                                                        • Appendix – Methodology and Abbreviations

                                                                                                          • Methodology
                                                                                                            • Abbreviations
                                                                                                              • TURF Analysis – Methodology
                                                                                                                • Figure 55: Reasons for using smartwatch/wristband, 2023
                                                                                                                • Figure 56: Interested usage scenarios of wearable devices, 2023

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