China smartphone share: OPPO may overtake Huawei

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China smartphone shipments grew 15 percent to reach 121 million units in Q3 2016, says Strategy Analytics.

Huawei has maintained first position with 15 percent China smartphone market share. The research note said rivals OPPO and Vivo are closing the gap in second and third place.

“China remains by far the world’s largest smartphone market, accounting for nearly 1 in 3 of all 375.4 million smartphones shipped globally this quarter,” said Linda Sui, Director at Strategy Analytics.

China’s smartphone market is returning to faster growth in the second half of this year, due to a more stable economic climate, multiple flagship 4G model launches, and solid direct or indirect subsidies from Chinese operators.
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Huawei has shipped 18.0 million smartphones for 15 percent China market share in Q3 2016, dipping slightly from 16 percent. Huawei is losing ground to ambitious rivals OPPO and Vivo.

OPPO soared 136 percent annually to ship 17 million smartphones and capture 14 percent market share in Q3.

OPPO is closing in on Huawei and is poised to overtake in the next quarter or two. OPPO’s R and A series models have been well received in second-tier cities and rural areas of China.

Vivo has maintained third position with a record 14 percent smartphone market share in China during Q3 2016. Vivo’s success lies in good hardware designs, robust product quality, strong retailer penetration, and rising brand awareness among mass-market consumers.”

Xiaomi fell 31 percent by shipping 11.4 million smartphones in China in Q3 2016.

Xiaomi had 9 percent market share, almost halving from 16 percent one year ago. Xiaomi is facing competition in mid-tier segments from Huawei, Gionee, LeEco and others.

Apple iPhone captured 6 percent smartphone market share in China in Q3 2016, sliding from 10 percent in Q3 2015.

China is Apple’s biggest challenge right now, where it is battling intense competition from Huawei, OPPO and others with their improved high-end smartphone designs and expanded distribution networks.

The new iPhone 7 range will help Apple to fight back in the next quarter or two, but this may bring only temporary relief as local Chinese players continue to ramp up their efforts to conquer the China market.
oppo-market-share-in-china-in-q3-2016Meanwhile, IDC said its latest R series especially R9 in China (F1 Plus in India) have fuelled OPPO to lead in China’s smartphone market and become the no. 4 smartphone maker globally.

The company shipped 25.3 million (+121.6 percent) devices in Q3.

Recently, OPPO said its Rs 100 crore manufacturing facility in Noida began production in July. The phone factory has a capacity of 10 million units. OPPO plans to hire 1000 Indian employees for the factory by the end of this year.