Huawei leads Chinese smartphone market as Xiaomi regains fourth spot: Canalys

By Karthekayan Iyer | Published on 26 Jul 2017
HIGHLIGHTS

Huawei shipped 23 million smartphones in the second quarter while the overall industry registered a 3 percent decline in shipments. Xiaomi regained its fourth sport with a sequential growth of 60 percent.

Huawei leads Chinese smartphone market as Xiaomi regains fourth spot: Canalys

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Huawei continues to maintain its leadership in the Chinese smartphone market for the second straight quarter. According to Canalys, the Chinese smartphone shipments saw a decline after six consecutive quarters of growth. The total shipments declined 3 percent to 113 million units, indicating a slowdown in the world's largest smartphone market.

Huawei, which overtook Oppo as the largest smartphone maker in the country last quarter managed to ship over 23 million smartphones in the second quarter of 2017. Oppo followed Huawei with 37 percent year over year growth in shipments accounting to over 21 million units. With shipments of over 16 million units, Vivo held onto its third spot in the country. Canalys says that Vivo lost "ground on the leading pair during the quarter."

Xiaomi overtook Apple as the fourth largest smartphone vendor with shipments surpassing 15 million units in the second quarter. This shouldn't come as a surprise considering the company recently confirmed record shipments in the tune of 23.16 million units globally in the second quarter. In China, Xiaomi registered a sequential growth of 60 percent and continues to offer the best value among all Chinese smartphone makers.

"Xiaomi still offers the best value in the Chinese market, and it remains the preferred choice for price-conscious consumers. The online channel continues to be a key route to market for Xiaomi and this quarter saw it take the lead in the 618 online sales events across online retail platforms, such as JD.com and Tmall," Canalys Research Analyst Lucio Chen said in a released statement.

Canalys says Xiaomi's Redmi series continues to perform well against similarly priced Oppo's A series and Vivo's Y series. It also notes that Xiaomi's network of Mi Home stores could pose a threat to Vivo and Oppo's offline dominance in the coming quarters. Apple was the fifth largest brand and the top five brands accounted for almost three-quarters of mobile shipments in the second quarter. Apple, Samsung and Meizu reportedly suffered annual shipments declines this quarter.

Canalys also notes that success in China's smartphone market primarily depends on the adoption of a diverse business strategy. It says while Huawei and Xiaomi have a strong online presence, they are now exploring offline segment to compete with Oppo and Vivo.

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Karthekayan Iyer

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