In China’s mobile phone market, Huawei has become an absolute dominant player. On October 30th the latest figures from Canalys, a third-party research firm, showed that in the third quarter of this year, Huawei’s mobile phones ( including glory) shipped 41.5m smartphones in the domestic market , again reaching a record 42% market share , an annual growth rate of 66% . It was also Huawei’s sixth consecutive quarter of double-digit growth in the domestic market. In the same period last year, Huawei’s share of China’s smartphone market was 24.9%.
Huawei’s strong growth is putting significant pressure on other brands. In the third quarter, other head-phone makers OPPO (about 17.5 million units, with 17.9% market share), vivo (17 million units, 17.4%), Xiaomi (8.8 million units, market share 9.0%) and Apple (5.1 million units, 5.2% of the market share) shipped a collective decline. Their combined share stake is only 50% of the market, down from 54% in the second quarter of 2019 and 64% in the third quarter of 2018.
Among the top five mobile phone brands, all four saw a drop of more than 20 per cent, with Xiaomi falling the most, by 33 per cent, in addition to Huawei’s unique 66 per cent increase in shipments.
“Huawei and other manufacturers have opened a huge gap in market share. Peng Luping, global vice president of Canalys Mobile, commented, “Huawei has already gained 25% of the market share compared to the second-place vivo of the quarter.” Its dominant position in the market gives Huawei a considerable say in negotiating with the supply chain and increasing its share of distribution channels. Huawei’s current market position in the 5G era will be further strengthened by its close relationship with operators in 5G network deployments and its control over key components such as 5G chipsets that are compatible with local networks. This puts a lot of pressure on OPPO, vivo and Xiaomi, which are having a hard time making a market breakthrough. ”
In the third quarter, Vivo finished second behind OPPO, while Xiaomi followed OPPO in fourth place and Apple stayed in fifth place.
Canalys research analyst Liu Siwei believes that Apple has maintained its fifth position, thanks to the timely launch of the iPhone 11 in mid-September, which accounted for nearly 40 percent of Apple’s third-quarter shipments. At the same time, Apple is better prepared in China than in previous years. “The iPhone 11 model focuses on improving camera functionality, which has proven to be very important to Chinese consumers. At the same time, setting a lower iPhone 11 release price (compared to the previous generation) and providing a more flexible channel profit structure for domestic distribution channels for new products are important market operations for Apple to spur shipments this year. Apple’s challenges in China remain imminent, and manufacturers and operators will do a lot of marketing and promotions around 5G over the next two quarters. This will be a big hit. “?
At present, the main focus of mobile phone companies on 5G mobile phones, November 1st, the three major operators will soon launch 5G package.
Younger companies are looking to take advantage of the 5G market opportunity to rapidly increase their smartphone market share, according to Canalys research analyst Liu Siwei.
In addition to Huawei, Vivo, ZTE, Xiaomi and Samsung have launched 5G-enabled smartphones with prices ranging from $500 to $1,000, and more 5G new products will be available in the fourth quarter.
Canalys expects 5G tariffs and mobile phone prices to fall soon to attract mass-market consumers. The intensity of competition among major manufacturers will be a continuation of the 4G era, which will lead to the first advantage of 5G products quickly disappeared.