Huaweis share of Chinas mobile phone market has increased to 42percent, with two to five shipments plummeting

 Huaweis share of Chinas mobile phone market has increased to 42percent, with two to five shipments plummeting

In Chinas mobile phone market, Huawei has become an absolute hegemon.

On October 30, the latest data from canalys, a third-party research company, showed that in the third quarter of this year, Huaweis mobile phone (including glory) shipped 41.5 million smart phones in the domestic market, once again setting a new record, reaching 42% of the market share, with an annual growth rate of 66%. This is also Huaweis six consecutive quarters of double-digit growth in the domestic market. In the same period last year, Huaweis share of Chinas smartphone market was 24.9%.

Huaweis strong growth has put significant pressure on other brands. In the third quarter, the shipments of oppo (about 17.5 million units, 17.9% market share), vivo (17 million units, 17.4% market share), Xiaomi (8.8 million units, 9.0% market share) and apple (5.1 million units, 5.2% market share) declined collectively. Their combined share accounted for only 50% of the market, lower than 54% in the second quarter of 2019 and 64% in the third quarter of 2018. u3002

Among the top five mobile phone brands, in addition to Huaweis unique performance, which has achieved a 66% increase in shipment volume, the decline of other four brands is more than 20%, of which Xiaomis decline is the largest, reaching 33%.

Huawei and other manufacturers have opened a huge gap in market share. Peng Luping, global vice president of mobile business of canalys, commented that Huawei has 25% market share higher than the second vivo in this quarter. Huaweis dominant position in the market gives Huawei a considerable say in negotiating with the supply chain and increasing its share in the distribution channel. In view of Huaweis close relationship with operators in 5g network deployment, as well as its control over key components such as 5g chipsets that are compatible with local networks, Huaweis current market position will be further consolidated in 5g era. This has put great pressure on oppo, vivo and Xiaomi, which have become very difficult to achieve market breakthrough.

In the third quarter, vivo surpassed oppo in the second place, while Xiaomi followed oppo in the fourth place, and apple remained in the fifth place.

According to Liu Siyi, research analyst at canalys, apple maintained its fifth place, thanks to the timely launch of new iPhone 11 products in mid September, which accounted for nearly 40% of Apples third quarter shipments. At the same time, apple is better prepared for the Chinese market than ever before. The iPhone 11 focuses on the improvement of camera function, which has proved to be very important for Chinese consumers. At the same time, it is an important market operation for apple to stimulate shipments this year to set a lower iPhone 11 release price (compared with the previous generation) and provide a more flexible channel profit structure for domestic distribution channels for new products. Apples challenge in China is still imminent. Manufacturers and operators will carry out a lot of marketing and promotion around 5g in the next two quarters. Its going to steal the show. ?

At present, all mobile phone companies are focusing on 5g mobile phones. On November 1, the three major operators will launch 5g packages.

Currently, in addition to Huawei, vivo, ZTE, Xiaomi and Samsung have launched 5g enabled smartphones priced between $500 and $1000, and more 5g new products will be launched in the fourth quarter.

Canalys expects 5g tariffs and mobile phone prices to fall soon to attract mass market consumers. The fierce competition among major manufacturers will continue the 4G era, which will lead to the disappearance of the first mover advantage of 5g products.

Source: surging news editor: Yao Liwei, nt6056