What Display Daily thinks: The Chinese PC, tablet (and smartphone) markets can do no wrong for the country’s display industry. When they are up, they give manufacturers a strong base to build upon. When the market is sluggish or down, manufacturers historically tend to manage their inventories, drop prices, and get aggressive on expanding their reach.
This is good news for consumers in developing regions, and it will eventually filter through to pricing on big ticket display items in Europe and North America. So, after a period of relative plenty in domestic markets, Chinese display manufacturers will get a chance to dump more product into international markets.
There’s no doubt that without government support, Chinese manufacturers would not be in a position to do much of anything. Oversupply and a lack of profitability plague company’s like Visionox, and many others, but traditional metrics don’t apply here. I look at a sluggish market for displays in mainland China as being a golden opportunity for the display vendors to be even more aggressive in other markets.
The upcoming Black Friday and Cyber Monday sales events will be an interesting battleground in TV and monitor sales. Samsung and LG have discounted TV prices over the course of last year, fighting off the growth of Hisense and TCL, and probably don’t have much more room for maneuver. It’s an election year which makes shoppers skittish about spending on big ticket items, for whatever the reasons may be. It’s a nice breeding ground for aggressive marketing and pricing by Chinese companies.
As for AI, is there a bubble or not? It’s kind of like the Internet bubble of 2001 which killed off the overhyped web companies and didn’t do anything to stop the growth of the online world. So, maybe you build for AI-centric devices, whatever that means to you in terms of display innovation, but you remain wary of short-term prospects for growth and opportunity. Of course, according to the data below, the Chinese market doesn’t seem to be waiting for anything, and is full steam ahead on AI. That’s going to be an interesting dynamic to watch.
But none of that has as much significance as the sluggish demand for TVs and monitors in the second half of 2024 in the US and other western markets. That’s just going to push prices even further down on OLEDs as Chinese suppliers consolidate their positions and stay on track to take over from Korea’s display industry. The inevitability of market dominance is a driving factor in negating any ill effects of losses, debt, or quarterly performance numbers for Chinese companies.
Now the questions becomes how far will prices come down? Unless there is a big jump in TV and monitor sales in upcoming holiday sales, without much to indicate anything to drive such a scenario, the first quarter of 2025 is going to be as rough a hangover as any we have seen in the last five years.
China’s PC Market Declines, Tablet Sales Surge in Q2 2024 Amid Complex Market Dynamics
Mainland China’s PC market experienced a decline in Q2 2024, as shipments of desktops, notebooks, and workstations fell by 6% year-on-year to 9.1 million units, according to the latest estimates from Canalys. In contrast, tablet sales surged by 20% to 7.8 million units, driven by growing adoption and aggressive online promotions. Despite the current slump in PC sales, Canalys forecasts a rebound in 2025, predicting a 12% growth for PCs, while tablet sales are expected to slow to just 1% growth.
| Vendor (company) | Q2 2024 shipments | Q2 2024 market share | Q2 2023 shipments | Q2 2023 market share | Annual growth |
| Lenovo | 3,071 | 34% | 3,492 | 36% | -12% |
| Huawei | 1,158 | 13% | 888 | 9% | 30% |
| HP | 817 | 9% | 973 | 10% | -16% |
| Tongfang | 742 | 8% | 400 | 4% | 86% |
| Asus | 660 | 7% | 641 | 7% | 3% |
| Others | 2,673 | 29% | 3,287 | 34% | -19% |
| Total | 9,121 | 100% | 9,681 | 100% | -6% |
The PC market’s downturn in Q2 was reflected in both consumer and commercial sectors, which saw declines of 3% and 9%, respectively. The competition within China’s PC market is becoming increasingly complex. Domestic vendor Tongfang is outpacing some international players in the consumer sector, particularly with its Mechrevo gaming brand. Additionally, Tongfang is gaining momentum in the commercial sector, particularly in the Xinchuang market, following its acquisition by local IT solutions provider iSoftStone, a partner of Huawei.
| Segment | 2023 shipments | 2024 shipments | 2025 shipments | 2024 annual growth | 2025 annual growth |
| Consumer | 23,755 | 26,141 | 26,363 | 10% | 1% |
| Commercial | 3,517 | 3,502 | 3,341 | 0% | -5% |
| Government | 214 | 320 | 501 | 50% | 57% |
| Education | 836 | 904 | 953 | 8% | 5% |
| Total | 28,322 | 30,866 | 31,157 | 9% | 1% |
The evolution of AI is also significantly impacting the market. According to a Canalys end-user survey conducted in May, AI engagement is more pronounced in Mainland China compared to Western markets. However, local regulations have limited the deployment of international AI tools, such as Microsoft’s Copilot, prompting Chinese vendors to pursue localized AI strategies. Canalys predicts that AI-capable PCs will see a penetration rate of 13% in Greater China in 2024, rising to 37% in 2025 and 62% by 2027. For vendors to capitalize on this trend, they will need to invest in AI PC roadmaps and adapt their strategies to China’s unique market landscape.
Meanwhile, China’s tablet market is heating up as more smartphone vendors expand into the tablet sector. This heightened competition, coupled with the entrance of vendors from education and Internet sectors, has fueled the development of kids’ tablets loaded with educational content. This renewed interest in tablets is leading to an increase in upgrades to products with better specifications at more affordable prices. To achieve stronger business outcomes, vendors must focus on market expansion and differentiation, with on-device AI models poised to play a key role in enhancing user experiences.
Despite the sluggish demand for PCs in 2024, Canalys remains optimistic about the market’s recovery in 2025, underscoring the importance of strategic AI integration and localized market strategies for vendors looking to secure their place in China’s evolving technology landscape.
| Vendor (company) | Q2 2024 shipments | Q2 2024 market share | Q2 2023 shipments | Q2 2023 market share | Annual growth |
| Huawei | 2,050 | 26% | 1,233 | 19% | 66% |
| Apple | 2,018 | 26% | 2,342 | 36% | -14% |
| Xiaomi | 925 | 12% | 745 | 11% | 24% |
| Honor | 652 | 8% | 401 | 6% | 63% |
| Lenovo | 492 | 6% | 440 | 7% | 12% |
| Others | 1,692 | 22% | 1,392 | 21% | 22% |
| Total | 7,831 | 100% | 6,553 | 100% | 20% |
| Segment | 2023 shipments | 2024 shipments | 2025 shipments | 2024 annual growth | 2025 annual growth |
| Consumer | 23,390 | 22,735 | 24,372 | -3% | 7% |
| Commercial | 15,066 | 14,290 | 17,308 | -5% | 21% |
| Government | 2,144 | 2,046 | 2,280 | -5% | 11% |
| Education | 640 | 568 | 629 | -11% | 11% |
| Total | 41,240 | 39,638 | 44,589 | -4% | 12% |
