Electronics

The number one brand in the Chinese mobile phone market began to change at the beginning of this year. Affected by the shortage of parts and components, Huawei's position has declined, and OPPO and vivo have gradually emerged. The latest data show that in the first quarter of this year, OPPO and vivo are fiercely competing for the top spot in the Chinese smartphone market. Among the leading brands, realme has the fastest growth.

OPPO and vivo lead the domestic market

Counterpoint Research data shows that in 2020, Huawei (including Honor) is the leader in China's mobile phone market, occupying 41% of the market. Vivo, OPPO, APPLE, and Xiaomi are next, with market shares of 18%, 16%, 11%, and 10% respectively.

Affected by the US trade sanctions on September 15, 2020, Huawei's severe shortage of parts caused its shipments in the fourth quarter to plummet by 26% year-on-year, and its market share fell to 32%. It is understood that in order to make better use of stock parts, Huawei has shifted its business focus to the high-end market and only sells models with high profit margins, which has left a gap in the mid-range market. Since then, Huawei has divested the Honor brand, and Honor as an independent brand further dilutes Huawei's market share in China.

In January 2021, OPPO ranked first among China's smart phone brands with a market share of 21%, followed by vivo with a share of 20%, and Huawei, Apple and Xiaomi each accounted for 16%.

For OPPO's first position in the first place, Varun Mishra, a senior analyst at Counterpoint Research, said that in 2020, OPPO adjusted its product line positioning, repositioned the Reno series and launched the cost-effective Reno 5 series, seizing more in the mid-to-high-end market. Share. In addition, the mid-range A series also performed well, meeting the market's demand for lower-priced 5G mobile phones. Of course, OPPO has also benefited from the decline in Huawei's market share.

The low-end market will become a key battlefield

The latest data from Counterpoint Research shows that realme mobile phone sales in the first quarter of 2021 increased by 82% month-on-month and 451% year-on-year, making it the top 7 brand in China's smart phone market. OPPO, Xiaomi, and vivo achieved double-digit growth from the previous quarter, which is the beneficiary of the decline in the share of Huawei and Honor.

OPPO and vivo are fiercely competing for the top spot in the Chinese smartphone market, while Huawei and New Honor are still facing challenges due to a shortage of parts. At the moment, Huawei is focusing on the high-end market, while Realme, OPPO, Xiaomi and vivo are taking the opportunity to launch new 5G models to seize the mid-range market vacated by Huawei. In addition, these brands are also actively expanding online (led by Xiaomi and realme) and offline (led by OPPO and vivo) distribution channels.

Counterpoint Research senior analyst Yang Wang said that among the leading brands, realme has the fastest growth. Consumers now favor cost-effective mobile phones with advanced features that support social media, photography, and games. Realme caters to this group with its extreme cost-effectiveness and marketing strategies.

Yang Wang said that in the next few quarters, the low-end market will become a key battlefield, and all leading manufacturers are paying close attention. It is expected that in the second half of 2021, with the widespread popularization of 5G smartphones in China, manufacturers need to continue to innovate in novel appearances, designs and technical configurations in order to attract consumers to switch phones. On the other hand, as the global semiconductor shortage continues to worsen, manufacturers also need to pay attention to supply chain management and parts inventory. In the long run, we are still waiting for the emergence of "killer" applications to eliminate the market's doubts about 5G smartphones, and this may also determine how long the 5G replacement wave can last.