Smartphone shipment in mainland China declined 11% year-on-year in the third quarter as consumer demand weaken due to the country’s slowing economy.

According to latest report from market research firm Canalys, smartphone shipments in China totaled 70 million units, down 11% compared to the 78.9 million in the same period last year, as major brands struggled to secure key components to produce device to meet demand.

Vivo and Oppo, owned by Dongguan-based consumer electronics manufacturers BBK Electronic Corporation were the China’s top two smartphones vendors which shipped 14.1 million and 12.1 million units, respectively, in the third quarter.

HONOR lost its H1 2022 growth momentum and slipped to third with 12.0 million units due to a lack of new launches. Apple came fourth with 11.3 million units, while Beijing-based Xiaomi ranked the fifth place with shipments of 9 million units in the third quarter.

Among the top five smartphone vendors, Apple Inc was the only brand to see positive growth, with shipments jumping 36% to 11.3 million.

Analysts say that the double-digit growth was due to demand for the iPhone 14 Pro model, but Apple cannot get away with weak Mainland China consumer demand.

“Its annual launch is highly anticipated by consumers and channels and strong demand for the iPhone 14 Pro series contributed to Apple’s overall performance. However, lackluster demand of the iPhone 14 series sent a strong signal that even Apple is not completely isolated from weak Mainland China consumer demand,” said Canalys Analyst Amber Liu.

Amid this overall decline in the market, Chinese vendors want to break through in the high-end segment. For example, Vivo is continuously investing in camera and imaging capabilities for its flagship X series, while OPPO is investing in building its cross-device ecosystem solution.

Looking ahead, Canalys expected that Mainland China market will maintain flat or see a small growth in 2023 which is still a much lower level than 2021 or pre-pandemic as demand is not likely to improve until late next year,