China's Smartphone Shipments Increase 15 Percent This Year

Strategy Analytics: China Smartphone Shipments Jump 15 Percent to 121 Million in Q3 2016

Strategic Analytics released a new report today that reveals Chinese smartphone shipments jumping 15 percent totaling 121 million units in Q3 2016

According to the latest research from Strategy Analytics, China smartphone shipments grew 15 percent annually to reach 121 million units in Q3 2016. Huawei maintained first position with 15 percent China smartphone marketshare, but rivals OPPO and Vivo are closing the gap in second and third place.

Linda Sui, Director at Strategy Analytics, said, “China smartphone shipments grew a healthy 15 percent annually from 105.0 million units in Q3 2015 to 120.9 million in Q3 2016. This was the fastest growth rate for a year. 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. 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.”

Neil Mawston, Executive Director at Strategy Analytics, added, “Huawei shipped 18.0 million smartphones for 15 percent China marketshare in Q3 2016, dipping slightly from 16 percent a year ago. Huawei remains the number one smartphone vendor in China, but it is steadily losing ground to ambitious rivals OPPO and Vivo. OPPO soared 136 percent annually to ship a record 17.0 million smartphones and capture 14 percent marketshare in Q3 2016. 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 maintained third position with a record 14 percent smartphone marketshare 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.”

Yiwen Wu, Senior Analyst at Strategy Analytics, added, “Xiaomi delivered yet another weak quarter, falling 31 percent annually and shipping 11.4 million smartphones in China in Q3 2016. Xiaomi clung on to fourth position with 9 percent marketshare, almost halving from 16 percent one year ago. Xiaomi is facing tough competition in mid-tier segments from Huawei, Gionee, LeEco and others. Apple iPhone captured 6 percent smartphone marketshare 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.”

Source: Strategic Analytics release


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