(Yicai Global) April 29 -- Quarterly smartphone shipments in the Chinese mainland rose for the first time in four years, jumping 27 percent in the first quarter from a year earlier, thanks to rapid growth in the number of fifth-generation wireless network users.

Manufacturers shipped 92.4 million handsets to retailers and other vendors in China in the three months ended March 31, according to a report published today by market researcher Canalys.

Rapid growth in the number of 5G users is a key factor in pushing people to change their phones. 5G users in China exceeded 350 million at the end of the first quarter, Canalys analyst Amber Liu said. Some local carriers have already dropped 4G packages, so new users and existing customers who want to change packages can only choose 5G options, Liu noted.

By market share, Huawei Technologies slipped from No. 1 to third place, after compatriot rivals Vivo and Oppo, as its shipments halved to 14.9 million, Canalys data showed.

Huawei was added to a US chip export blacklist in May 2019, prompting theShenzhen-basedtelecoms gear giant to sell its budget phone brand Honor last November. Theloss of revenue following the sale also contributed to a 16 percent drop in first-quarter revenue, Huaweisaid in an earnings report filed yesterday.

Vivo and Oppo shipped 21.6 million and 20.6 million units, respectively. Xiaomi, Apple and Honor ranked fourth to sixth, Canalys data showed.

Vivo and Oppo are performing strongly in the entry-level 5G mobile phone segment, with products generally priced below CNY2,000 (USD300), according to Nicole Peng, vice president of mobile market research at Canalys.

Huawei has maintained its solid position at the high end, with the Mate 40 Pro and Nova 8 Pro priced above USD500, she added.

Worldwide smartphone shipments reached 347 million in the first quarter, up 27 percent over a year earlier, the Canalys data also showed.

Xiaomi clocked its best single-quarter performance ever, growing 62 percent and shipping 49 million units, just after Samsung and Apple, which shipped 76.5 million and 52.4 million units, respectively.

Editor: Peter Thomas