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Smartphone shipment in China drops 5% in Q1

Posted: 02 May 2016 ?? ?Print Version ?Bookmark and Share

Keywords:Strategy Analytics? smartphone? OPPO? Huawei? Android?

According to the latest research from Strategy Analytics, China smartphone shipments declined five per cent annually to hit 105 million units in 1Q16. Huawei maintained first position and captured 16 per cent smartphone market share in China, followed by fast-growing OPPO in second place.

Linda Sui, director at Strategy Analytics, said, "China smartphone shipments declined five per cent annually from 109.8 million units in 1Q15 to 104.9 million in 1Q16. China smartphone growth is slowing due to market saturation, inventory build and economic headwinds. Despite the slowdown, China remains by far the world's largest smartphone market, accounting for nearly one in three of all 334.6 million smartphones shipped globally this quarter."

Neil Mawston, executive director at Strategy Analytics, added, "Huawei shipped 16.6 million smartphones for the number one spot in China during 1Q16, growing 48 per cent annually from 11.2 million units in 1Q15. 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. OPPO is a superstar this quarter, overtaking Xiaomi to become the second largest smartphone vendor in China. OPPO shipped 13.2 million smartphones and captured 13 per cent market share in China in 1Q16, up an impressive 67 per cent annually. OPPO's R and A series models have been well received in second-tier cities and rural areas of China. OPPO's micro-innovations, such as flash charging technology, have also helped it gain more attention in urban areas such as Shanghai."

China smartphone vendor shipments

Figure 1: China smartphone vendor shipments and market share in Q1 2016 (Source: Strategy Analytics)

Woody Oh, Director at Strategy Analytics, added, "Xiaomi had a soft quarter, falling nine per cent annually and shipping 12.8 million units in China in 1Q16. It slipped to third position with 12 per cent market share, down from 13 per cent one year ago. Xiaomi is facing tough competition in mid-tier segments from Huawei and Samsung. Vivo held fourth position with 12 per cent smartphone market share in China during 1Q16, up significantly from seven per cent a year ago. The success of Vivo lies in good hardware designs, robust product quality, strong retailer penetration and rising brand awareness among mass-market consumers."

Linda Sui, Director at Strategy Analytics, added, "Apple posted a soft quarter in China, slipping to fifth position with 11 per cent smartphone market share. Mixed demand for the iPhone 6s and stronger competition from OPPO and others were among the key factors for its lackluster performance."

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