By Li Panpan

(JW Insights) Sep 5 -- Global smartphone production dwindled by approximately 6.6% yearly, settling at a modest 272 million units in Q2 of this year. Four Chinese brands, Xiaomi, OPPO, Transsion, and Vivo, ranked third to sixth in production, following Samsung and Apple in the quarter, according to a TrendForce report released on September 4.

Samsung continues to lead in production rankings, delivering 53.9 million units in Q2. However, it suffered a 12.4% QoQ downturn. Apple’s output for the second quarter clocked in at 42 million units, marking a 21.2% dip from the preceding quarter.

Xiaomi (including Xiaomi, Redmi, and POCO) is reveling in a bountiful Q2, posting production numbers of around 35 million units—a staggering seasonal uptick of 32.1%.

Oppo (including Oppo, Real, and OnePlus) also had a fruitful Q2. The brand primarily rode the wave of rebounding demand in Southeast Asia and other regions, amassing approximately 33.6 million units and marking a seasonal leap of 25.4%.

In a dramatic shake-up of global rankings, Transsion (including TECNO, Infinix, and itel) eclipsed Vivo to secure the fifth spot for the first time ever.

Vivo churned out 23 million units in Q2—a modest quarterly increase of 15%—and, as a result, slipped to sixth place in global rankings.

The first half of 2023 clocked in at a mere 522 million units—marking a 13.3% YoY decline and setting a ten-year low for both individual quarters and the first half of the year combined, said the TrendForce report.

Trendforce identified three key reasons behind this slump in production:

The easing of pandemic restrictions in China failed to spur demand.

The demographic dividend from the emerging Indian market has yet to translate into tangible demand.

Initially, it was estimated that brands would return to normal production levels as excess inventory was cleared. However, the current economic downturn has kept consumer spending in check—undermining first-half production more than expected.