Electronics

The latest research report released by Strategy Analytics pointed out that the total global smartphone wholesale revenue in Q1 2021 will increase by 37% year-on-year to more than US$100 billion. The prolonged iPhone 12 super cycle, supply shortages, soaring component prices, higher than expected 5G penetration rates, and industry consolidation, all these factors together contributed to the increase in total revenue this quarter.

Sui Qian, Senior Director of Smartphone Services at Strategy Analytics, said: “Apple and Samsung still maintain a clear leading position in terms of revenue. The two contributed 65% of the revenue share in the quarter, but the competition between the chasers is very fierce. vivo surpasses Huawei, with an 8% revenue share (up from 5% in the same period last year), took the third place for the first time. It was followed by OPPO and Xiaomi, each of which accounted for 7% of the total global smartphone revenue."

Wu Yiwen, Senior Analyst for Smartphone Services at Strategy Analytics, commented: “25% of the global smartphone market’s revenue this quarter came from ultra-high-end smartphones with wholesale prices over US$900. Apple and Samsung dominate these lucrative market segments. At the same time, vivo ranks first in the price range of US$400 to US$499; OPPO is leading the price range of US$191 to US$299; Transsion maintains its leading position at the entry level (US$36 to US$99)."

David Kerr, Senior Vice President of Strategy Analytics, added: “Apple and Samsung dominate this market segment almost entirely in the price range above $900. This is due to their huge brand advantages and excellent user experience. But in 2021 Q1, shipments in this price range are only 25 million units. Challengers have limited opportunities to gain share in this price range, without decades of huge investment and hundreds of millions of outstanding user experience, and It is difficult for products with strong competitiveness to truly challenge and shake the dominance of Apple and Samsung."

David Kerr continued: “We believe that challenger brands like Xiaomi, OPPO, vivo, etc., are the most feasible in the short term to gain a larger market share in the price range of US$100 to US$400. Smartphones in this price range are This quarter accounted for 56% of total shipments. Huawei’s past successful cases in the high-end market (before political intervention) provide an excellent demonstration of how other manufacturers can use the halo effect. Provide flagship equipment with first-class functions and technologies, Long-term continuous brand investment and selection of the right technology partner are the long-term models for smartphone manufacturers to succeed."