Domestic smartphone shipments grew by 11% annually, far exceeding US India

Electronic enthusiasts eight o'clock: China's smartphone market has remained the most watched market in the world in the past year.

The global IT consulting company Canalys released its tracked smartphone market data in 63 countries around the world yesterday. The first quarter of the Chinese market shipped more than 130 million units, accounting for 32.4% of the global market. The second largest market in the United States is 2.4 times, and the third largest market is 4.7 times in India.

Throughout the year, the smartphone China market shipped 470 million units, an annual growth rate of 11%, sweeping the market growth of 1.9% in 2015 and returning to double-digit growth.

Ding Jie, a research analyst at Canalys, believes that the root cause of the significant increase in shipments of domestic smartphones comes from many aspects, including the promotion of brand promotion, product updates and channel construction.

"In terms of domestic machine performance, Huawei, OPPO, Vivo's flagship star products have become more and more obvious to their overall sales contribution and brand power." Ding Jie told the First Financial Reporter that Huawei has tried more market activities including Leica. As well as cooperation methods such as Porsche, OPPO and Vivo gradually penetrated into consumers in first- and second-tier cities through their large amount of brand advertising investment.

According to the domestic data released by Canalys, the annual growth rates of shipments of Huawei, OPPO and vivo are 20.9%, 105.6% and 63.8%, respectively. In the year-round results, Huawei led the second OPPO (73.21 million) and the third Vivo (63.24 million) with a slight advantage of the annual shipment of 76.17 million.

According to the 2016 annual results announced by Huawei's consumer business at the beginning of the year, Huawei's consumer business smartphone shipments reached 139 million units in 2016, a year-on-year increase of 29%. OPPO and vivo have not released global shipment data.

Ding Jie believes that the competition between the above three manufacturers will become more intense in 2017, and it will be quite difficult for one to achieve a 20% market share and continue to maintain a leading position.

However, she also stressed that the rapid growth of OPPO and other manufacturers is not an accident. The impact of the scale effect of various brand manufacturers on operators and open channels will also reduce the survival space of small and medium-sized brands.

It is worth noting that Apple's performance in the mainland and Hong Kong is relatively weak. Canalys data shows that Apple shipped 43.77 million units a year, a decrease of 18.2% from the previous month.

According to Apple’s earnings report, Apple’s mobile phone sales in the Chinese market in the fourth quarter of last year were 14.9 million units, down about 13% year-on-year, and its market share in China fell to 11% from 15% in the same period last year. Greater China has become a market that Apple has to revisit.

Ding Jie told the First Financial Reporter that the mainland and Hong Kong markets are the hardest hit areas in Apple's global top ten markets, which directly led to its global annual shipments falling by 6.9% compared to 2015, and its outlook in 2017 is still not optimistic.

"Apple's iPhone7 hasn't changed much in appearance, and there is no breakthrough in technology. This makes consumers expect higher product updates for the 10th anniversary of the iPhone, such as the new iPhone can not meet consumer expectations, especially in the new In terms of technology adoption and design, Apple’s high-end market in China will be hit harder,” Ding Jie said.

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