Jinwu Financial News | Goldman Sachs Research reports that in 2024, China's smartphone market growth slowed. Shipments fell 1% year on year in October, and increased 6% year on year from January to October. After peaking in May, monthly market shipments declined month by month from June to October. The year-on-year growth is expected to continue to be pressured in November and December due to the impact of last year's high base. Despite this, there is a clear trend of upgrading camera specifications. Since 2024, the penetration rate of cameras with 20 million pixels or more has increased to 52%, up from 39% and 31% in 2023 and 2022, which is in line with Goldman Sachs's expectations for upgrading smartphone camera specifications in China.

The bank believes that despite the slowdown in market growth, the upgrade in camera specifications shows that consumer demand for high-end features is still growing. The overall market is expected to decline 1% year over year in the fourth quarter. In terms of the 5G mobile phone market, shipments increased 1% year-on-year in October, and the penetration rate reached 90%. The number of newly launched 5G smartphone models fell 29% year over year, indicating a decrease in the number of new entrants to the market and a stabilizing competitive landscape.

The bank suggests focusing on companies with outstanding performance in camera upgrades and 5G technology promotion, such as Hon Hai Precision, Ruisheng Technology (02018), and Dali Optoelectronics. These companies have advantages in technological innovation and market adaptability, and are expected to gain more share in the future market. At the same time, Goldman Sachs reminds investors that the growth of the smartphone market may face uncertainty due to fierce market competition and macroeconomic fluctuations, and advises investors to pay close attention to market trends and corporate strategy adjustments.