Friday, 05 May 2017 10:00

Chinese-made smartphones dominate in Q1: IDC

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Nearly 90.8% of the Chinese buy smartphones from Huawei, OPPO, vivo, Xiaomi – anything locally made, figures from IDC indicate.

That means Apple was left with just 9.2% of the 104.1 million smartphones sold (shipped) in the Chinese market in Q1, 2017, experiencing a 26.7% drop year-on-year.

The first quarter is an atypical one where unsold inventory left over from Q4 sales has an impact on shipments.

Based on this quarter smartphone sales only grew 1% y-o-y. Few new models are released and Samsung’s GS8 unboxing was in Q2.

“Despite a soft first quarter in China, the second quarter should pick up sequentially given not only JD.com’s June promotions, but also activity around several new products like vivo with its Y53, Xiaomi with its Mi 6, Meizu with its E2, and Gionee with its M6S Plus,” said Tay Xiaohan, senior market analyst with IDC Asia/Pacific's Client Devices team.

IDC Q1 smartphines China

On a straight numbers basis, Huawei was in pole position with 20.8 million phones (20%) and its market share was up 25.5% y-o-y. OPPO was second at 18.9 million (18.2%) up 19.5% y-o-y while vivo was number three at 14.6 million phones (up 7.6% y-o-y).

OPPO and vivo are both owned by BBK, and OPPO has pursued a global strategy establishing footholds in Europe, EMEA, and Australia. It will be opening more stores in Chinese tier one and two cities while sibling vivo already has an established home market and is now looking to go off-shore.

A few models dominated sales. OPPO’s R9s and Plus refresh, vivo X9 (not seen in Australia) and Huawei’s Honor 8 (not seen in Australia) — all mid-range phones loaded with features — were the top three models with the R9s/Plus comprising close to half of all the OPPO phones sold there.

iTWire has a review of these handsets. (5.5” AMOLED R9s and the 6” AMOLED R9s Plus).

"Apple has been seeing double-digit y-o-y declines for the fifth quarter in a row, but we believe that Chinese consumers are holding out for the launch of Apple's 10-year anniversary iPhone at the end of the year, and this will help Apple to see a rebound in the China smartphone market," IDC’s Tay said.


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Ray Shaw

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Ray Shaw ray@im.com.au  has a passion for IT ever since building his first computer in 1980. He is a qualified journalist, hosted a consumer IT based radio program on ABC radio for 10 years, has developed world leading software for the events industry and is smart enough to no longer own a retail computer store!

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