(Yicai) Jan. 16 -- China's smartphone market rebounded last year after two years of falling shipments, with Vivo leading the pack of phone brands, according to analyst firm Canalys.

Annual shipments increased 4 percent to 285 million units from 2023, driven by manufacturers' strategic investments and technological innovations, the Singapore-headquartered data provider reported on WeChat today. Domestic brand Vivo led the market with 49.3 million shipments, up 11 percent year-over-year, capturing a 17 percent market share.

Analyst Lucas Zhong forecasts China's smartphone shipments will exceed 290 million units this year. Zhong noted that China offers a unique and favorable market environment, with expectations of steady demand recovery, improving macroeconomic conditions, and healthy channel operations. Additionally, the Chinese government's recent announcement of smartphone subsidies sets a foundation for growth this year.

Last year, Huawei Technologies ranked second with 46 million shipped units, a 37 percent year-over-year increase, representing a 16 percent market share. Apple secured third place, followed by Oppo and Honor in fourth and fifth positions, each of them holding a 15 percent market share, highlighting the fierce competition.

Senior analyst Toby Zhu said market growth was structurally sound and healthy, achieved through enhanced product value, technological innovation, market education, and demand recovery.

The fourth quarter saw a 5 percent year-over-year increase with 77.4 million shipments, boosted by peak season sales in the premium segment and national stocking subsidies. During this quarter, Apple claimed the top position with a 17 percent market share despite a 25 percent drop in shipments. Vivo secured second place, while Huawei followed closely in third with 12.9 million units shipped.

Editor: Emmi Laine