Huawei Leads China’s Smartphone Market as Xiaomi Pips Apple: Canalys

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Domestic smartphone shipments have fallen by 3 percent to 11 million in the second quarter of this year after six consecutive quarters of growth, with Huawei leading the market, shipping over 23 million smartphones, new research said on Wednesday.

According to a survey conducted by global market research firm Canalys, Oppo had to settle for second place with just over 21 million, despite growing 37 percent year on year. This was followed by Vivo that shipped just over 16 million.

In fourth place, Xiaomi with a shipment of under 15 million smartphones overtook Apple.

“Xiaomi still offers the best value in the Chinese market and it remains the preferred choice for price-conscious consumers. 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,” said Lucio Chen, Canalys Research Analyst, in a statement.

According to Lucio, Redmi has had strong uptake in the mid-tier, going head to head with Oppo’s A series and Vivo’s Y series.

Huawei Leads China's Smartphone Market as Xiaomi Pips Apple: Canalys“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,” he added.

The rest of the top ten, including Apple, Samsung, and Meizu, all suffered annual shipment declines this quarter.

“China’s smartphone market continues to consolidate. The top five brands accounted for almost three quarters of shipments, with the top four all growing and adding 10 percent to their cumulative share compared with the same quarter a year ago,” said Hattie He, Canalys Research Analyst.

The report pointed out that Huawei and Xiaomi have strong online brands, and are now rapidly growing their offline channels.

Oppo and Vivo face greater pressure on their mid-range from Redmi and Honor. The failure to establish online channels will slow the momentum of these rising stars.

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