WASHINGTON: China’s smartphone shipments declined 5% on year in the first quarter of 2016, according to Strategy Analytics. About 104.9 million smartphones were shipped to the China market in the first quarter of 2016, down from 109.8 million units during the same period in 2015, said Strategy Analytics.
“China smartphone growth is slowing due to market saturation, inventory build and economic headwinds,” said Linda Sui, director at Strategy Analytics. “Despite the slowdown, China remains by far the world’s largest smartphone market, accounting for nearly 1-in-3 of all 334.6 million smartphones shipped globally this quarter.”
Huawei shipped 16.6 million smartphones for the number one spot in China during the first quarter of 2016, with the shipments growing 48% from 11.2 million units a year earlier, Strategy Analytics indicated. “Huawei has been growing rapidly in China due to extensive distribution channels and popular Android models like the Mate 8. However, there are signs that Huawei’s growth in the high end segment is now starting to slow, as several major rivals like Oppo and Vivo are fighting back,” said Neil Mawston, executive director at Strategy Analytics.
“Oppo is a superstar this quarter, overtaking Xiaomi to become the second largest smartphone vendor in China,” Mawston continued. Oppo shipped 13.2 million smartphones and captured a 13% share in China in the first quarter of 2016. Shipments were up 67% from the 7.9 million units shipped in the first quarter of 2015.
“Oppo’s R-and A-series models have been well received in second-tier cities and rural areas of China,” Mawston noted. “Oppo’s micro-innovations, such as flash charging technology, have also helped it gain more attention in urban areas such as Shanghai.” Xiaomi saw its smartphone shipments in China fall 9% on year to 12.8 million units in the first quarter of 2016. Xiaomi slipped to third position with a 12% share of the market down from 13% a year ago, according to Strategy Analytics.
“Xiaomi is facing tough competition in mid-tier segments from Huawei and Samsung,” said Woody Oh, director at Strategy Analytics. Vivo held fourth position with a 12% share of China’s smartphone market in the first quarter of 2016, up from 7% a year earlier, Strategy Analytics disclosed. “The success of Vivo lies in good hardware designs, robust product quality, strong retailer penetration, and rising brand awareness among mass-market consumers,” Oh continued.
Meanwhile, Apple posted a “soft” quarter in China slipping to fifth position with an 11% share of the market, according to Strategy Analytics. “Mixed demand for the iPhone 6s and stronger competition from Oppo and others were among the key factors for its lackluster performance,” Sui indicated.
