(Yicai Global) July 29 -- China’s smartphone shipments could end up well below 300 million units this year, the worst performance since 2012, according to a forecast by research firm Canalys.

Chinese consumers are cutting back spending on handsets, and even the second quarter’s massive ‘618’ retail campaign will not be able to restore the market to the same level as last year, Canalys noted in a research report published today.

In the three months ended June 30, shipments fell 10 percent from a year earlier to 67.4 million, the report showed.

Vivo Communication Technology returned to the top spot with 13.2 million units shipped in the period, while Honor, hived out from Huawei Technologies in November 2020, ranked second at 13 million. Third place went to Oppo Mobile Telecommunications and its brand One Plus, with 11.8 million.

Xiaomi and Apple ranked fourth and fifth, at 10.6 million and 9.9 million each.

In a market with limited demand, Canalys advised suppliers to prioritize market share and infrastructure, while working with their partners across the board, including on pricing strategies, order cycles, and inventory control.

International Data Corporation also recently published a market report, saying China’s smartphone shipments tumbled 14.7 percent to about 67.2 million units in the second quarter. In the first half, they fell 14.4 percent to about 140 million.

Editors: Shi Yi, Peter Thomas