Huawei has been under attack from the US since May 2019 but that seems to have somehow strengthened its position in the Chinese market. IDC has just released the latest data for the Chinese smartphone market in Q2 2019 and we can see some really big gains for Huawei during this period.

Among the top 5 smartphone makers in China in Q2 2019, Huawei was the only company to register an increase in its shipments. The telecommunications giant shipped over 36.3 million smartphones in this period in China, which was a solid 27% increase from last year’s 28.5 million units. This helped its market share grow from 27.4% last year to 37% in the most recent quarter. IDC notes that the company’s increased investment and focus on the Chinese market boosted its growth in the last quarter. Also, the P30 series and the Honor 20 series were quite popular in China driving its market share to new heights.

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As for the other four manufacturers in the list, Xiaomi saw the biggest drop in terms of shipments. The company ranked fourth, trailing behind Vivo and OPPO in terms of market share and shipments. Xiaomi’s shipments fell from 14.5 million units in Q2 2018 to just 11.7 million units in Q2 2019, registering a 19.3% drop. IDC adds that the company’s offline management issues and the early release cycle of the Mi 9 this year could have been the factors that contributed to its decline in shipments.

If you notice, the second and third positions in the IDC’s list have been reversed this year. vivo has overtaken OPPO in terms of shipments, shipping nearly 100K units more than OPPO last quarter. Interestingly, a recent report by Canalyst for the same period puts OPPO on top of vivo for Q2 2019, that too by a clear margin of a few hundred thousand units.

At the fifth place is Apple, shipping 6.6 million units and maintaining a steady 6.7% market share during this period.

The total smartphone shipments in China fell slightly to 97.9 million in Q2 2019. The total shipments for H1 2019 were down by 5.4% at around 180 million units.

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Samsung and Apple are estimated to use about 70% of OLED displays produced this year. That figure is going to affect other manufacturers like Huawei who will have to cut down the percentage of its smartphone shipments sporting AMOLED displays to just 8%.

Samsung Display is one of the major OLED panel manufacturers in the world, so it is understandable that it will need all it can get. Stats says Samsung will receive 56% of displays produced this year while Apple will take delivery of 75 million units, which amounts to 14% of global OLED production in 2017.

According to the source, other OLED display manufacturers that should cover for the shortage won’t begin mass production early enough. LG Display is estimated to begin shipping its OLED display in 2018 and China’s BOE Technology Group Co.Ltd may not start shipping till 2020.

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Other Chinese manufacturers that have signed up for OLED displays from Samsung Display are OPPO and Vivo. OPPO will get 13% while Vivo will get 10% of OLED panels produced.

(Source)

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