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China smartphone shipments down 5 percent in Q1

Staff writer |
According to the latest research from Strategy Analytics, China smartphone shipments declined 5 percent annually to hit 105 million units in Q1 2016.




Huawei maintained first position and captured 16 percent smartphone marketshare in China, followed by fast-growing OPPO in second place.

Linda Sui, director at Strategy Analytics, said, "China smartphone shipments declined 5 percent annually from 109.8 million units in Q1 2015 to 104.9 million in Q1 2016.

"China smartphone growth is slowing due to market saturation, inventory build and economic headwinds. Despite the slowdown, China remains by far the world's largest smartphone market, accounting for nearly 1 in 3 of all 334.6 million smartphones shipped globally this quarter."

Neil Mawston, Executive Director at Strategy Analytics, added, "Huawei shipped 16.6 million smartphones for the number one spot in China during Q1 2016, growing 48 percent annually from 11.2 million units in Q1 2015. Huawei has been growing rapidly in China due to extensive distribution channels and popular Android models like the Mate 8.

"However, there are signs that Huawei's growth in the high end segment is now starting to slow, as several major rivals like OPPO and Vivo are fighting back. OPPO is a superstar this quarter, overtaking Xiaomi to become the second largest smartphone vendor in China.

"OPPO shipped 13.2 million smartphones and captured 13 percent marketshare in China in Q1 2016, up an impressive 67 percent annually.

"OPPO's R and A series models have been well received in second-tier cities and rural areas of China. OPPO's micro-innovations, such as flash charging technology, have also helped it gain more attention in urban areas such as Shanghai."

Woody Oh, Director at Strategy Analytics, added, "Xiaomi had a soft quarter, falling 9 percent annually and shipping 12.8 million units in China in Q1 2016. It slipped to third position with 12 percent marketshare, down from 13 percent one year ago.

"Xiaomi is facing tough competition in mid-tier segments from Huawei and Samsung.

"Vivo held fourth position with 12 percent smartphone marketshare in China during Q1 2016, up significantly from 7 percent a year ago.

"The success of Vivo lies in good hardware designs, robust product quality, strong retailer penetration, and rising brand awareness among mass-market consumers."

Linda Sui, Director at Strategy Analytics, added, "Apple posted a soft quarter in China, slipping to fifth position with 11 percent smartphone marketshare.

"Mixed demand for the iPhone 6s and stronger competition from OPPO and others were among the key factors for its lackluster performance."


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