The latest Counterpoint Market Pulse Report for the Chinese smartphone market has highlighted some highs and lows in the market until the end of June 2021. The report indicates that Xiaomi was the fastest growing brand within the second quarter of the year, and Vivo has the largest market share of 23% during the period under review.
The Counterpoint report also showed that the second quarter of the year saw the lowest sales numbers since 2012, with 75 million smartphones sold. While there was a 13% dip QoQ in Q2 2021, a 7% decline YoY was also reported. The numbers paint a varied picture of the state of the Chinese smartphone market. It could also indicate that the effects of the coronavirus pandemic may still be felt after a tortuous 2020 for China. However, there could be several other factors contributing to the shrinking of the market. The US ban on Huawei, coupled with its actions to shed some businesses, could also be part of the reasons for the decline.
Xiaomi and several Chinese brands, and even Apple experienced some significant improvements while Huawei was the biggest loser. Huawei’s market share plummeted from 32% in 2020 to the current 10% as of Q2 2021. Xiaomi grew fastest with a 70% performance year-on-year. The number reflects Xiaomi’s rapid expansion plans that have seen it scale up its presence in lower-tier locations with several offline outlets.
The Counterpoint report also predicts a quick bounce-back of the Chinese smartphone market in Q3, as the fundamentals remain bright. The rebound could be driven by some inherent factors, including a resurgent Honor brand, which continues to expand and experienced a decent growth trajectory and fast-rising market share.
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