Smartphone sales are expected to shrink after total shipments peaked last year. With growing online sales, fewer people are willing to buy smartphones at brick-and-mortar stores.

Xiaomi Corp, a Beijing-based company with 13 million quarterly shipments, sells its handsets on the Internet.

Chinese retailers are shifting to accessories and repairs as fewer smartphone buyers frequent their stores.

Device repair, smartphone cases and screen protectors are among the most thriving businesses, according to shop owner Chen.

"People can stop buying handsets from the stores, but they can't get their phone repaired without showing themselves in front of my counter," he said.