Abstract : The Chinese e-commerce market has been experiencing a positive growth cycle for a year; in the first half of 2024, both the volume and value of Android sales increased; HarmonyOS saw a leap in both volume and value; the mid-to-low and ultra-high-end segments showed definite growth. Driven by competition in the mid-to-high price range, Android and HarmonyOS accelerated their growth, while iOS implemented a more proactive pricing strategy compared to 2023. From a lifecycle perspective, Android products have entered a positive steady state, HarmonyOS is driven by new products, and iOS is more reliant on contemporary products than before. In areas such as foldable screens, AI, and photography, iOS needs to establish more unexpectedly competitive points.

Overall Market: The Chinese E-commerce Mobile Market Continues to Maintain a Positive Growth Cycle

In the first half of 2024, except for January, all months saw double-digit growth. According to Sandalwood's data, e-commerce mobile phone sales volume grew by 16%, with sales revenue up 12% y/y. During the recent 618 Shopping Festival, the market maintained a 16% y/y growth rate. The Chinese e-commerce mobile market has been in a positive growth cycle for a year since last July.

Volume and Price: Android and HarmonyOS See Growth, iOS Declines

From January to June, Android phones achieved steady growth, with sales volume up 24% y/y and sales revenue up 27% y/y. The average price slightly increased, remaining stable. HarmonyOS phones saw nearly 50% y/y growth in sales volume and almost 100% growth in sales revenue, with a significant increase in average price. iOS phone sales and revenue declined, and under the proactive pricing strategy ,the average price in the second quarter has dropped significantly.In the current competitive landscape, a proactive pricing strategy proves to be a relatively effective approach.

Price Range: Definite Growth in Low, Mid, and Ultra-High-End Segments, Structural Changes Driven by Competition in Mid-High Range

In terms of price segments, significant growth is evident at both ends of the market. The market for phones priced below 3000 RMB saw a steady y/y increase of around 20%. The ultra-high-end market (over 10,000 RMB) experienced rapid growth, with a growth rate exceeding 200%.

In the mid to high-end market, there is a clear differentiation. The 4000-6000 RMB and 8000-10000 RMB segments were more affected by Apple's pricing strategy, leading to a decline. Meanwhile, Android phones in the 4000-6000 RMB range and HarmonyOS phones in the 6000-10000 RMB range maintained accelerated growth, with their competitiveness continuously improving.

Amid the ongoing high-end competition, the 6000-8000 RMB price range saw simultaneous growth for Android, HarmonyOS, and iOS, maintaining a high growth rate. Additionally, the 3500-4000 RMB price range, serving as a buffer for the high-end market, also exhibited rapid growth, with a y/y increase of nearly 100%.

Lifecycle: Steady Iteration for Android, New Product-Driven Growth for HarmonyOS, Apple More Dependent on Current Products

In terms of product lifecycle, Android products have entered a relatively stable period after a year of intense competition. The share of products in the 4-6 months and 7-9 months range has increased to nearly 30%, becoming the core lifecycle segments.

HarmonyOS products have fully entered a new product-driven phase, with new products within the first 6 months being the main force. Products aged 1-3 months and 4-6 months each account for over 30% of the total.As these new products enter the regular lifecycle, the iteration of product lifecycles is expected to gradually stabilize. Apple products, on the other hand, are more dependent on current products, with the proportion of older products relatively lower compared to previous years. In the second quarter, sales of current products accounted for over 90%.

Competition among Android, HarmonyOS, and iOS is becoming increasingly intense. Android maintains its lead with steady growth and broad market coverage; HarmonyOS is rapidly rising due to strong new product launches and high growth rates; iOS needs to establish new breakthroughs in innovation and market strategy, especially in areas like foldable screens, AI, and photography, to maintain its competitive edge.

Sandalwood data provides daily e-commerce sales data for key brands across the entire platform. If interested, please contact us service@sandalwoodadvisors.com