Local smartphone makers best Apple in China market

abi researchTo most people around the world, Coolpad, Lenovo and Xiaomi don’t quite ring a bell when it comes to smartphones. But, in China, these three Chinese smartphone OEMs outsold Apple in Q2, according to ABI Research.

Only Samsung managed to hold its own but snaring a 17 percent market share. Lenovo was next with 13 percent, Coolpad with 10 percent and Xiaomi edged out Apple with 6.5 percent.

“Even though these OEMs are only selling into the Chinese market, the size of the market has allowed them to achieve shipment volumes that place these OEMs in the top 12 globally. It is not hard to imagine these OEMs as global competitors within the next two years,” said Michael Morgan, Senior Analyst of ABI Research.

As China is the largest smartphone market, accounting for 28 percent of all smartphone shipments in Q2, success in China carries an increasingly global significance. These three rising stars accounted for 11.1 percent of all worldwide shipments in the quarter. The sheer size of the Chinese market has made it one of the most coveted for tier 1 OEMs looking to expand share and secure a future as smartphone market growth becomes increasingly dependent on emerging and low-cost markets.

As Apple continues to struggle with delivering low-cost products, Chinese OEMs continue to press their advantage of competitive hardware at lower price points.

“China has proven to be an excellent environment for local OEMs to test and prove their business models. In time it will be interesting to see if their unique home-field advantages can be leveraged beyond the Chinese market,” said Jeff Orr, Senior Practice Director of ABI Research.

 

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