The success of Xiaomi (OTC:XIACF)'s recently launched Mi 14 series and Huawei's Mate 60 series could signal the end of a protracted slump in China's smartphone market, according to analysts at International Data Corporation (IDC). IDC forecasts year-on-year sales growth in China for Q4 2023, which would be a significant turnaround after ten consecutive quarters of decline.
The optimism comes amid reports of strong demand from Chinese firms for Qualcomm (NASDAQ:QCOM)'s processors. The U.S. chipmaker's Snapdragon 8 Gen 3 processor powers Xiaomi's Mi 14 series, indicating a fierce competition with Apple (NASDAQ:AAPL) and Huawei.
On Oct 31, 2023, Xiaomi CEO Lei Jun announced the launch of the Mi 14 series in China on Weibo (NASDAQ:WB). The new model, equipped with Qualcomm's Snapdragon 8 Gen 3 processor and Xiaomi's HyperOS software, targets the premium market. Despite the ongoing pandemic and economic downturn, as well as supply shortages, the Mi 14 series sold over a million units within a week of its launch.
This surge in sales comes as China's smartphone market has been grappling with challenges intensified by U.S. export controls. However, the early success of Xiaomi's Mi 14 series and Huawei's Mate 60 series suggests a potential rebound for the industry as we move into the final quarter of the year.
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