Chinese domestic handset brands constitute 87% of Chinese smartphone market in Q2

NEW DELHI: In China, the domestic Chinese handset brands captured 87% of the Chinese smartphone market in the second quarter of 2017, according to a report by Counterpoint. The smartphone shipments in China grew 3% annually during the second quarter.

Huawei and Vivo were the fastest growing brands followed by OPPO and Xiaomi,the report said. The four brands are the leading brands of the China smartphone market having lead over Apple and Samsung as well.

Xiaomi saw a growth of 20% year-on-yea where it almost doubled its volumes owing to its latest flagship Mi 6 and low-tier models such as Redmi Note 4X. As per the report, the comeback of Xiaomi has made the market further competitive and almo st a zero-sum game.

"The top four Chinese brands now capture close to 69% of the market as these brands have raced ahead of international and other local brands with expansive distribution reach and exciting portfolio," said James Yan, Research Director, Counterpoint.

"As predicted, last quarter, the Chinese smartphone market saw a healthy sell-out through April, May of the second quarter with some level of inventory correction allowing the Chinese brands to ship more smartphones in June with a revamped portfolio," added Yan.

"Huawei continued to capture the top spot this quarter ahead of rivals OPPO and vivo, shipping higher volumes into the channels. Huawei's nova, enjoy series along with flagship P10 were in strong demand during the quarter," said Tarun Pathak, Associate Director, Counterpoint.

"OPPO and vivo were able to also grow significantly over last year with strong performance in mid-tier with A and Y series respectively as well as with F/R and V/X series in high- tier respectively. Each of the series are well positioned in the fast-growing $100-$199 (600-1300 rmb) and affordable premium $300-$399 (2000-2700 rmb) segments catering demand from tier-1 cities to tier-4 towns," added Pathak.

India, South Asia and Africa will be the key focus locations to drive additional scale and market share to compensate the dip in domestic market, the report said.

Source: Chinese domestic handset brands constitute 87% of Chinese smartphone market in Q2