Huawei smartphone strides ahead in China

Huawei has taken top spot again in China’s smartphone market, edging past Oppo after two quarters of trailing in second place. According to Canalys, the Chinese smartphone giant, which launched the P10 and P10 Plus during MWC, shipped close to 21 million units to secure an 18 percent market share in Q1.

Despite strong annual growth of 55 percent, Oppo fell to second place with shipments of just under 20 million units. Third-placed Vivo had the lowest annual growth of the top three, capturing a 15 percent share with its shipment of 17 million units.

“China’s smartphone market continues to grow, with shipments increasing by over nine percent year on year this quarter. But there is a clear indication that the market is consolidating. The top three vendors are pulling away at the head of the market, accounting for more than 50 percent of shipments for the first time this quarter,” said Lucio Chen, Research Analyst of Canalys.

In the corresponding quarter a year ago, Huawei led with Vivo second and Oppo fourth, together accounting for 42 percent of the market. Xiaomi took third place but has since fallen to fifth behind Apple, shipping just over nine million units in Q1.

Xiaomi faces increasing pressure from Huawei’s online efforts with Honor, as well as Oppo and Vivo, whose marketing activities have been taking attention away from Xiaomi.

“To grow this year, Xiaomi will need to quickly switch from being a value-for-money vendor to become an aspirational brand. Xiaomi’s desire to move up the value chain in China will be an uphill struggle, considering Oppo and Vivo’s lead and Huawei’s plans to increase investment in its offline channel in 2017,” ” said Mo Jia, Research Analyst of Canalys.

Canalys estimates 114 million smartphones shipped in China in the quarter ending March 31.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s