GfK, another market research agency, said China smartphone sale was flat in Q2 2017 at 110.1 million units — caused primarily by saturation in the market. GfK forecasts smartphone demand in China to total 461 million in 2017, an increase of two percent. The growth in value terms (USD) is expected to be 11 percent.
On the other hand, GfK said India smartphone market increased 14 percent in the second quarter of 2017.
Canalys said Huawei shipped over 23 million to lead the market for the second quarter in a row.
Oppo shipped just over 21 million and had to settle for second place, despite growing 37 percent year on year. Vivo held onto third place, shipping just over 16 million, losing ground on the leading pair during the quarter.
Xiaomi was the standout vendor as it overtook Apple to take fourth place. Xiaomi shipped just under 15 million smartphones in China, up more than 60 percent sequentially.
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.
“Redmi has had strong uptake in the mid-tier, going head to head with Oppo’s A series and Vivo’s Y series. Xiaomi’s growing network of ‘experience stores’ will pose a threat to Oppo’s and Vivo’s offline dominance, while showcasing the design and build quality of its devices,” said Canalys Research Analyst Lucio Chen.
Five of the ten leading vendors, including Apple, Samsung and Meizu, suffered annual shipment declines this quarter.
“Adopting a diverse channel strategy is key to success in China, as competition has intensified in online and offline channels, resulting in many vendors losing market share quickly,” said Canalys Research Analyst Hattie He.
Huawei and Xiaomi have strong online brands, and are rapidly growing their offline channels. Oppo and Vivo face pressure on their mid-range from Redmi and Honor. The failure to establish online channels will slow the momentum of these rising stars.
GfK said global smartphone demand totaled 347 million units in 2Q17, up four percent year-on-year. Emerging Asia led the demand growth with a 13 percent year-on-year increase, followed by Central and Eastern Europe at 11 percent, and Latin America at 10 percent. Market value grew nine percent, due to rising average sales price (ASP).