Shipments of smartphones by China-based makers increased 20% on year to 176 million units in the second quarter of 2018, buoyed by the rollouts of new models by vendors, Digitimes Research has estimated.

While China's smartphone vendors are expected to be able to keep their shipment momentum in the third quarter, their shipments are likely to be undermined by overstocking in the fourth quarter, therefore affecting their overall performance for the second half of 2018.

As compared to the same period of a year earlier, Huawei posted the highest shipment growth rate in the second quarter of 2018, followed by Xiaomi, Oppo and Vivo. Growing overseas shipments, particularly in the markets in Europe and Latin America, contributed greatly to Huawei's shipment growth in the second quarter. Optimizing its cooperation with telecom operators and the release of multiple models for the entry-level and mid-tier segments, Huawei has managed to ramp up the ratio of overseas shipments to over 50% of its total smartphone shipments.

Xiaomi enjoyed a high shipment growth in the domestic market in the second quarter, driven by the launch of a number of sub-CNY1,000 (US$147) Redmi models. While domestic demand also helped heat up growth momentum at Oppo and Vivo in the quarter, Oppo has gradually ramped up its ratio of overseas shipments, and in contrast, Vivo still relies heavily on domestic demand.

For the second half of 2018, Huawei is likely to continue expanding its product portfolios, which will help the company not only expand its share in the entry- and mid-range segments but also depress sales of high-end models from Oppo and Vivo in the domestic market and Xiaomi's sales in the European market, according to Digitimes Research's forthcoming second-quarter 2018 report about China's smartphone market and industry.