According to the latest research from Counterpoint, the smartphones shipments in China grew a modest 3% annually during Q2 2017.
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. Huawei and Vivo were the fastest growing brands followed by OPPO and Xiaomi, together cementing the top four spots and extending their lead over Apple and Samsung by a widening margin.
Apple’s performance continues to be seasonal while Samsung is losing out to Oppo-Vivo offline. Xiaomi made a surprise comeback after being on the decline for a few quarters against Huawei Honor.
Huawei continued to capture the top spot this quarter ahead of rivals OPPO and Vivo. Huawei’s Nova, enjoy series along with flagship P10 were in strong demand during the quarter.
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 yuan) and affordable premium $300-$399 (2000-2700 yuan) segments catering demand from tier-1 cities to tier-4 towns.
Xiaomi saw a positive uptick growing 20% YoY and almost doubling the volumes sequentially after a dip in Q1 2017 when the vendor’s volumes reached almost 2013 levels. The key reason behind the comeback can be attributed to strong demand for its latest flagship Mi 6 and low-tier models such as Redmi Note 4X as well as focus on diversifying distribution channels.
Xiaomi still offers the best value in the Chinese market, and it remains the preferred choice for price-conscious consumers. The online channel continues to be a key route to market for Xiaomi and this quarter saw it take the lead in the 618 online sales events across online retail platforms, such as JD.com and Tmall
said Canalys Research Analyst Lucio Chen.