Chinese smartphone shipments returned to growth for the first time in a year after rising 4 per cent in Q2 2016, said Strategy Analytics, due to “improved LTE volumes from local brands, robust operator promotions and a stabilised economy”.
Total shipments hit 109 million units during the quarter, up from 105.1 million in Q2 2015, as the county maintained its position as the world’s largest smartphone market, accounting for nearly 1 in 3 of all 340.4 million shipments globally.
Huawei continued to lead the way in China with 18 per cent market share (see chart below, click to enlarge) and shipping a total 19.1 million smartphones during Q2 2016, with 15 per cent growth annually, from 16.6 million units in Q2 2015.
While keeping its number one position, Strategy Analytics noted that it was the company’s slowest growth rate for two years, with competition from players like Oppo, Vivo, LeEco and other rivals “rising fast”.
Oppo was ranked at second place, shipping 15.2 million smartphones and capturing 14 per cent market share. Its annual growth was also impressive, up 108 per cent, with its R and A series models performing well in “second-tier cities and rural areas of China”.
“Oppo’s latest technology innovations, such as ultra-fast battery charging, have also helped it gain more attention in top-tier cities such as Shanghai,” said Neil Mawston, executive director at Strategy Analytics.
Meanwhile, Vivo rose to third position in the country for the first time, with 12 per cent market share. Xiaomi, in comparison, struggled during the period, falling 34 per cent annually, shipping a total 12.8 million smartphones, with total market share of 12 per cent, down from 19 per cent.
Apple also had a “soft” quarter, said Linda Sui, director at the company, as market share dwindled 2 per cent to 7 per cent in total, and was ranked in fifth place.
“Mixed demand for the iPhone 6s, overstocked volumes in channel from previous quarters, as well as stronger competition from Huawei, Oppo and others were among the key factors for its lacklustre performance,” she added.
Comments