Huawei and Xiaomi smartphones were big hits in China during its holiday sales period, surpassing Apple’s iPhones in the market. China’s Singles Day sale which is celebrated on November 11 brings great deals, and it seems that local brands hit saw the most success.

Huawei and Xiaomi register outperform Apple in China

According to a Counterpoint Research report, the Chinese tech giants managed to surpass the Cupertino based company and its latest iPhone 15 lineup in sales. Smartphones from domestic brands saw higher sales in the 11.11 shopping period. The report noted that in the two weeks starting from October 30 to November 12, iPhone sales fell by 4 percent.

On the other hand, Huawei’s Singles’ Day sales rose by a sizeable 66 percent year on year. Its latest flagship 5G series (the Mate 60 lineup) led this notable jump in sales. Similarly, Xiaomi also recorded a notable 28 percent bump during this same period. Interestingly, the two domestic companies’s jump in sales also boosted the local market’s smartphone sales overall by 5 percent year on year during the Singles’ Day sales period.

To compare pricing, the Huawei Mate 60 series has a starting price tag of 5,499 Yuan (roughly 775 US Dollars), while the Xiaomi 14 lineup starts from 3,999 Yuan (roughly 563 US Dollars). Meanwhile, the Apple iPhone 15 is sold for 5,999 Yuan (roughly 845 US Dollars). Xiaomi even shared its sales figures during the shopping festival, which brought in over 22 billion Yuan or roughly 3 billion US Dollars.

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A new report from CINNO Research has just revealed the rankings for the top 5 smartphone brands for the month of September 2021. In this month, Apple achieved the fourth spot with its sales seeing a sizeable growth both month on month and year on year.

As per the report, the top 4 smartphone brands include OPPO at the top, with Vivo arriving second and Honor coming in third. On the other hand, Apple came fourth and Xiaomi took the fifth spot. Although, while the rankings showcase the total number of units sold by each brand, but the sales growth paints a different picture. Every other Chinese brands saw a decline month on month while their year on year performance saw a rise.

However, Apple, on the other hand, had strong growth both over the previous month and last year, with its monthly growth being 32.5 percent and annual sales surging by a significant 43.6 percent as well. In other words, the Cupertino based giant saw the highest growth in terms of sales in the Chinese market, with its overall sales reaching 3.7 million units in September alone.

Meanwhile, Oppo shipped around 4.6 million units, while Vivo sold 4.2 million units. Honor took the third spot with 3.8 million units being sold, which means that Apple almost took the third spot. Xiaomi rounded up the list with 3.2 million units being shipped in this month. The CINNO Research added that the primary reason for the explosive growth of the brand is due to the recent launch of its iPhone 13 series along with festive sales in China.

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Huawei is dominating the Chinese smartphone market. The company currently has a hold of nearly half of the smartphone market share in the region and is one of the leaders in the 5G market as well.

According to a new report by Counterpoint, the Chinese tech giant accounts for 46 percent of all smartphone sales in China. This amounts to more than the market share of its rivals including Oppo, Vivo, and Xiaomi combined. It also marks the highest market share held by Huawei in its entire history in China, with sales being 14 percent higher than the same period back in 2019.

Notably, the news arrives during the time where Huawei’s products have been criticized and shunned in various western countries. Furthermore, the company’s international sales have declined sharply as well. However, Huawei has invested heavily in its home country where it is still growing strong despite the ongoing coronavirus pandemic and scrutiny.

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This also arrives after the company lost TSMC as its chip supplier due to US sanctions. In China, the smartphone market has declined by a total of 17 percent, with competitors like Vivo losing 29 percent market share, Oppo witnessing a 31 percent decline, and Xiaomi falling by 35 percent in the same period. The decline is also primarily due to the viral outbreak, although, the situation is better than in early 2020.

One of the segments where Huawei dominates is the 5G handset market. The company has a foothold of about 60 percent for 5G devices in China, where the most number of 5G enabled smartphones are sold. Interestingly, one in every three smartphones sold in China was 5G ready. Similar to Huawei, even Apple made great strides in this period, with its growth being even higher than the Chinese brand, reaching a 32 percent rise year on year.

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While the Coronavirus pandemic has devasted various industries and economies across the globe, the smartphone industry has seen a slight recovery in recent times. Now, Xiaomi is seeking to further strengthen its presence in the overseas market to grow its smartphone business in regions apart from its home country, China.

According to newly published market data, Xiaomi managed saw an increase in smartphone shipments in the first quarter of 2020. This led it to become the world’s fourth largest handset vendor, behind Samsung, Huawei and Apple. This growth arrived despite the company seeing lowered Chinese shipments in its home market. In other words, while the likes of Huawei, Oppo and Vivo had maintained a ratio of around 50 percent shipments for home and overseas market, Xiaomi only had 25 percent.

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This means, Xiaomi has put its sights on expansion in overseas market, with the Chinese tech giant only shipping 7 million smartphone units in China during Q1 2020. However, this also caused the company to lose its standing in its domestic market, lagging behind Oppo. Although, Xiaomi performed quite well in the European market, with Spain in particular, and in India, where it is the top selling smartphone brand.

Furthermore, shipments for all smartphone brands are expected to be affected in Q2 of 2020, but Xiaomi is expected to bump its smartphone shipments. This will arrive as the Indian and European market regain their momentum, after the various government imposed lockdowns are relaxed. Considering its presence in these particular markets, Xiaomi will have a much easier task in handling the pandemic in the next quarter.

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According to a new report from the known analytical agency Canalys, China’s smartphone market suffered a sizeable blow in the first quarter of 2020. The primary reason for this is undoubtedly the Coronavirus pandemic that had devastated the country during its initial outbreak.

In the Canalys report, the Chinese smartphone market only saw 73 million units being shipped in Q1 of 2020. This is a notable decline of 18 percent during the same period back in 2019. While the smartphone market, in general, was seeing stagnation, the viral outbreak seemed to have had a severe negative impact on the industry globally. However, the top five OEMs all reported on seeing better than expected results during this time.

In China, Huawei leads the smartphone market, with financial reports revealing an impressive performance for the first quarter. The Chinese tech giant was also the only vendor that actually saw a growth in shipments during this time of crisis (we had previously reported on this as through a report regarding the Chinese market by Counterpoint Research). Oppo and Vivo took up the second and third place, with shipment falling by 26 percent and 19 percent respectively.

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An important factor that prevented the overall smartphone market in China from declining was also linked to government actions. The electronic product and its vendors were listed by the government as essential items, which basically allowed them to continue production and regain its footings. Unfortunately, the same can not be said for other major markets that are seeing complete shutdown, like India.

According to Canalys analyst, Mo Jia, “The vendors with the greatest financial resources, supply chain control and negotiating power with the channel are recovering fastest, while smaller vendors have been brought down. The coronavirus crisis has pushed the market toward the top five, which now account for nearly 95% of the total market.” Interestingly, Huawei with its 5G offerings had best leveraged the market to its favor and managed to pull ahead of its competitors.

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5G advancements have been booming all across the globe. At the forefront of this advancement, nations like China and South Korea are ahead of the curve. Now, a new report from Chinese analysts suggests that 20 percent of all mid range smartphones will support 5G networking.

According to a research agency in China, an estimated 5 million 5G capable smartphones were sold in December 2019 alone and the figures are expected to rise further. Furthermore, it is expected that more than 20 percent of the smartphones under the 2000 Yuan (roughly 290 US Dollars) will be 5G enabled this year. By 2021, the same statistics are expected to be applicable across the globe.

As of right now, most 5G smartphones that are sold are mostly concentrated in China and are exclusive to the local market. The best examples of this are Huawei, Vivo and Xiaomi’s 5G handset offerings that are not available anywhere else in the world (eg: Xiaomi Mi 9 Pro, Vivo IQOO and Huawei Nova 6). Notably, Huawei and its subsidiary Honor do not ship with Google services to markets where 5G is available, while Vivo is yet to expand in the European Regions, The Middle East or even the US.

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A few other OEMs like Samsung, OnePlus, and Oppo are more broad with the availability of their respective 5G smartphones. Devices like OnePlus 7 Pro 5G, Oppo Reno 5G, and the Galaxy S10 5G are great examples that are available in United Kingdom, Germany, Finland, UAE and more.

In China alone, local OEMs expect to sell over 150 million 5G smartphone units in 2020 while the global smartphone market sees a marginal market rise of 0.7 percent overall. The growth of 5G advancements is being accredited to MediaTek and its affordable Dimensity lineup of 5G chipsets. Processors like Dimensity 800 and even Dimensity 1000L are expected to be seen in sub $200 or $300 categories by the end of this year.

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Chinese smartphone market has been grappling with the challenge of a saturated market occasioned by the rapid influx of new models into the market. This has led to a drop in the total number of shipments in recent times. Research firm Digitimes predicts that shipments of smartphones in China will continue its downward spiral by over 10%. This will signify a continuation of poor shipments from the third quarter which dropped by 6.9% Year on Year in the third quarter of 2018.

The expected drop in shipments is not only hinged on a saturated market alone but it is also related to a reduction in subsidies for the purchase of 4G phones by local telecom operators. It is also related to a lengthening of the device replacement cycle by users who tend to use phones for longer periods now. There is a link between this reason and the rate of product releases as users have apparently become fed up with seeing a new, slightly upgraded model of their new phone just a couple of months after the release.

Read Also: China smartphone shipments rebound in Q2 2018: Digitimes

However, the Double Eleven (11.11) shopping festival is likely to drive total smartphone shipment in the fourth quarter but Digitimes projects that won’t be enough to guarantee a sequential gain in Q4. Digitimes projects a drop over 10% when compared to last year’s figures. The research firm also hinted that Apple is expected to make a big climb in the Chinese market in the fourth quarter and could outpace OPPO and Vivo to clinch the third spot in terms of smartphone shipments with the availability of the iPhone XR and the older-generation iPhone devices at lower prices. This underscores the popularity of the Apple brand in China.

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At the beginning of the year, a few Chinese smartphone manufacturers had revealed during their new year presentation that the domestic market had recorded less sales in 2017. Popular market intelligence firm, IDC has corroborated the statement with their report for Q4 2017 and 2017 as a whole.

According to the firm, the market suffered a 15.7% decline in Q4 2017 and 4.9% for the whole year when compared to the same period in 2016. Q4 shipments amounted to 114.3 million units, leading to 444.3 million units shipped in 2017 as against 467.3 million in 2016.

Nevertheless, the top manufacturers still recorded an increase in market share for the quarter and for the whole year. Apple increased its market share from 11% in Q4 2016 to 12.9% in 2017. Huawei, OPPO, and Vivo did the same but the biggest success was recorded by Xiaomi who nearly doubled its market share from 7.4% to 13.9%.

Huawei still holds the largest market share in its home country and shipped a total of 90.9 million smartphones thanks to the success of its budget smartphones. It is followed by OPPO and Vivo with 80.5 and 68.6 million shipments for the year. Xiaomi is 4th, ahead of Apple with a 12.4% market share and 55.1 million units shipped.

READ MORE: LG May Quit The Chinese Smartphone Market

Apple is the second company in the top 5 that shipped less smartphones in 2017 – 41.1 million units as against 2016’s 44.9 million units. Samsung doesn’t make it to the top 5. Even with its success globally, Samsung is finding it difficult to outshine China’s domestic manufacturers.

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Lenovo did surprisingly well in the PC market, with the company rising to the top pretty soon after its entry. However, when it came to the smartphone market, this Chinese tech giant is struggling. Recently, it was said that the company’s acquisition of Motorola from Google wasn’t exactly successful and even outside of Motorola, the company’s own smartphone lineup hasn’t been able to make its mark in the industry.

We have seen some great phones from the company, but since it is mainly operating in the low-end and mid-range segment, the search for sales hasn’t exactly yeiled expected results or improved its image as a smartphone maker. But the company seems to be invested in this industry and it is said that in the next couple of years, it will make sure that it does well in one of the most important markets in the world, the Chinese smartphone market.

We have seen the Chinese market dominated by the likes of OPPO, Xiaomi, and Huawei, which means it’s not going to be easy for Lenovo to aggressively expand its market share in the region. What usually helps a company improve its share is aggressive pricing and looks like Lenovo is going to opt for the cost pricing strategy to take on competitors in China.

According to the Chinese media CNR, Lenovo Mobile Business Group President, Cheng Xudong said recently that the company plans to give up the race for profits by pricing its products at cost. He beleives that phones from the ZUK lineup as well as Moto lineup will help the company increase its presence in the Chinese market. And if it manages to make its mark in the super-competitive Chinese market, then Lenovo could easily take on competitors in the global market.

No wonder Lenovo priced the ZUK Z2 cheaper than the Xiaomi Mi5 at 1799 Yuan ($283)! But there’s no guarantee that a no profit strategy is going to work in the long run. We will have to wait and see how Lenovo performs in the coming years.

What are your thoughts? Can ZUK and Moto phones make Lenovo one of the top smartphone makers in China and in the world?

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