The smartphone market in China
Chinese brands are becoming more and more successful in the global smartphone market. China controls 42% of the world’s ‘smart’ mobile market and momentum is constantly improving. The combined total market share of Chinese Huawei, OPPO, Vivo, Xiaomi and Realme hit an all-time high in the second quarter of last year. This should be a positive indicator for these firms in the global cell phone market.
It might not be surprising that Huawei, OPPO, Vivo and Xiaomi have together gained the highest market share in history. “Targeted marketing, faster portfolio renewal, premium devices at affordable prices and multi-channel presence, are some of the key reasons why Chinese brands continue to expand their reach in both local and international markets where they operate,” Counterpoint Research commented on the aforementioned companies and their surprisingly high shares in the market.
As the analysts explain, “these brands are aggressively expanding outside of China and achieving growth that offsets saturation in their domestic market. Their strategies and product portfolios are more aligned with local needs and preferences, which is one of their key strengths.”
Market course
Chinese manufacturers managed to grow while the overall market fell to 360 million units. This marks the 7th consecutive downward quarter. The global smartphone market slowed down in the last 2 years. Analysts believe China’s persistently contracting economy is to blame. With the market declining every year, it’s only natural that China is one of the affected regions. China alone accounts for more than a quarter of global smartphone shipments and saw sales fall by 9%.
The trade war between China and the US has impacted both. Uncertainties in the global smartphone market have been plaguing the industry for some time now. In comparison, India was an important market for growth in sales – which set a record in Q2 this year.
The analysts themselves don’t seem too worried. They think the drop in 2019 will level out when 5G is adopted and actually grow steadily after that. “We expect 5G to have faster growth than 4G LTE. 5G has a universal standard, which will make its penetration even faster,” Counterpoint Research said in its analysis. Experts predict that 5G device sales will exceed 20 million in 2019.With device prices expected to increase for an initial period, 5G is expected to gradually increase the average selling price over time. Increased sales will result in more revenue for manufacturers.
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Author: PC-GR
The World of Technology
