The launch of the iPhone 8 and drop of prices of older models have helped Apple turn in a sterling quarter in China, with shipment rising 40 percent to 11 million units this Q3.
China-based vendors strengthened their grip in the India smartphone market, snaring 51.4 percent share of the smartphone shipment in Q1, according to IDC. They grew 16.9 percent sequentially and an impressive 142.6 percent over the same period last year.
In contrast, share of homegrown vendors dropped to 13.5 percent in the Q1 from 40.5 percent in the same quarter last year.
Overall, 27 million smartphones were shipped in Q1, a 14.8 percent growth over the same period last year. Unlike last year, shipment grew sequentially in the first quarter of 2017 by 4.7 percent recovering from demonetisation impact in Q4.
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.
Everybody knows China is big but with nearly half a billion smartphones shipped last year, the market is massive — that’s one smartphone for every three person in the world’s most populous country.
According to Canalys estimates, China reached 476.5 million unit shipment, growing year on year at 11.4 percent, far exceeding the annual growth rate of 1.9 percent in 2015. China shipment reached 131.6 million units in Q4, which is the highest single quarter total in history, accounting for nearly a third of worldwide shipment.
Huawei took the top spot in the market with 76.2 million shipment, a small lead ahead of runner-up Oppo with 73.2 million units, followed by Vivo in third place at 63.2 million units.
While Samsung remained at the top, China smartphone makers occupied four of the top five positions to snare the lion’s share in India in Q4, according to Canalys.
Their extremely price-competitive devices pushed out India makers, who have been hit hard by the Indian government’s decision to demonetise the INR500 and INR1,000 (US$7.30 and US$14.65) banknotes.
“Local brands’ target customers typically buy in cash and from independent retailers. With the short-term liquidity crunch caused by demonetisation, these retailers are suffering a slowdown in consumer spending. Local vendors are losing out as retailers look to shift their stock to fast-moving, current devices. In Q4 2015, Micromax, Intex and Lava took second, third and fifth place, accounting for almost 30 percent of the market. One year on and all three vendors have dropped out of the top five, with their collective share falling to around 11 percent,” said Rushabh Doshi, Analyst of Canalys.
Three Chinese smartphone vendors — Huawei, Oppo and vivo — helped drive the global smartphone market in Q3. Together their shipment grew 60 percent while the overall global market just moved up six percent that quarter, according to Canalys.
The standout performer was Oppo, which had a stellar quarter, taking hold of the Chinese market from under the noses of its rivals. Its smart phone shipments grew around 40 percent sequentially and 140 percent year on year. Tough competition in China has affected Huawei’s global position, with it now looking increasingly unlikely that it will reach its annual shipment target of 140 million units.
Samsung continued to lead the market, but its issues with the Note 7 are starting to affect its business. It shipped just over 76 million units (excluding all Note 7s), down nine percent on the same quarter a year ago. In second place, Apple’s iPhone shipments also suffered an annual decline, falling five percent to just over 45 million units.
Move aside Huawei and Xiaomi because Oppo is now the leader in China’s smartphone market. And the number goes to vivo, another Chinese maker.
According to IDC, the China smartphone market grew 5.8 percent year-on-year and 3.6% quarter-on-quarter in Q3 with Oppo and vivo overtaking Huawei for the first time.
Oppo and vivo rose because the Chinese market has evolved beyond operator and online driven channels over to an offline structure that dovetails with Oppo and vivo’s strengths.
It’s almost unthinkable but the smartphone market has dipped for the first time in its history.
According to Canalys, worldwide smartphone shipment fell from 324 million units in Q1 2015 to 321 million units in Q1 2016. The top two vendors both posted shipment declines, with Apple the worse hit.
Excluding Apple and Samsung, smartphone shipment grew five percent despite some of the big named international vendors outside the top five also faring badly. LG, Lenovo and TCL-Alcatel posted significant declines, while Sony plummeted by around 57 percent.