Displaying items by tag: OPPO
China suffered its first ever annual smartphone decline, with shipments down 4% from 2016 to 459 million units in 2017, Canalys research indicates. This drop was partly due to China having one of its worst year-on-year performances in Q4 2017, with shipments plummeting by over 14% to just under 113 million units.
Huawei grew shipments by 9% against the overall market decline, shipping more than 24 million smartphones and staying on top. Shipments fell for both Oppo and Vivo, by 16% and 7% respectively, but they held onto their respective second- and third-place positions. Oppo shipped 19 million smartphones, while Vivo shipped 17 million. Apple overtook Xiaomi to take fourth place, pushing Xiaomi back to fifth with 13 million units.
Huawei had its best ever quarter in its home market, shipping more than 24 million smartphones in Q4, to reach a total of 90 million in 2017. “Huawei’s push into tier-three and tier-four cities has yielded positive results,” said Canalys Research Analyst Mo Jia.
“Nova and Honor have successfully gained share from smaller vendors, such as Gionee and Meizu. Honor’s performance has complemented Huawei’s success, by contributing more than half of Huawei’s total shipments,” Jia added. “But competition between Huawei and Honor is getting fierce, and Huawei must deal with possible internal cannibalization.”
Despite the dip in Q4, Oppo and Vivo both saw double-digit annual growth in 2017, according to Canalys. “The market has slowed faster than expected. Being aware of inventory issues, both vendors have set up flagship stores in tier-one cities to boost their branding and drive value growth,” said Jia. “Failure to drive footfall, however, will threaten Oppo and Vivo’s ongoing channel transformation and render the exercise futile.”
Canalys Research Analyst Hattie He said the declining Chinese market will have a “detrimental impact” on those Chinese vendors that have been heavily replying on their home market. “It will affect their cash flow and profitability, limiting overseas expansion and bringing into question future survival,” He said.
With Lenovo and ZTE refocusing on the Chinese market in 2018, competition will intensify among vendors outside the top five. “There is little room left for the smaller vendors,” said He. “The leading players will make aggressive plans to maintain or grow their market share. We can expect a major market shake-up in China in 2018.”
Huawei, Xiaomi, Oppo and Vivo represent an uprising in the smartphone industry. Together, these Chinese OEMs (original equipment manufacturers) accounted for a record 48 percent of global device shipments in Q2 2017, according to Counterpoint Research. Emerging markets represent a gold mine for Chinese OEMs, as they continue to aggressively scale beyond their mainland.
The smartphone industry has been dominated for almost a decade by Apple and Samsung who hold the top two sales spots. But that could soon change as customers in emerging markets look to cheaper options supplied by Chinese OEMs. Huawei was the first Chinese smartphone manufacturer to go global and they spent significant investments to establish a presence across multiple markets. This provided momentum for other Chinese OEMs in the same league to consider the same.
“We are currently experiencing the rise of three emerging OEM players from China: Xiaomi, Oppo and Vivo. These three manufacturers are now considered global smartphone suppliers and they are competing head-to-head with the traditional players,” said Jay Srage, President East Europe and MEA at Qualcomm, in a recent interview with Telecom Review.
An emerging smartphone brand like Xiaomi, with a brand that is going viral in emerging markets like India, Russia and Indonesia, is now emerging as one of the top global players in the smartphone industry because of its “unique vision of how to address the sector” Srage said. The OEM has a strategy to set a price/quality ratio that sets it apart, by emphasizing the importance of user experience, in addition to quality, at an affordable price.
The success of Chinese smartphone brands is their ability to be successful not only in cementing their positions in their home country, but also managing to expand beyond mainland China at the same time, explains Counterpoint Research Associate Director, Tarun Pathak. Emerging markets such as India, South Asia, Southeast Asia, and Africa will be the key focus geographies to drive additional scale and market share for Chinese OEMs, Pathak explains.
Research Analyst, Shobhit Srivastava, noted, “The competitive landscape is now changing drastically across many regions. In developed markets the top three brands are strengthening their hold. In emerging markets meanwhile, rankings continue to be volatile, with new players also entering the top ten rankings within a few quarters of launch. This has led to various strategies by OEMs during the quarter to counter competition.”
Clamping down on competition, claims Srivastava, has resulted in ODM (original design manufacturer) tie-ups, operator tie-ups in prepaid markets, reducing excessive portfolios and even offering devices for free. Counterpoint Research expects “further innovation (and desperation) in go-to-market strategies by different OEMs struggle for traction in fast-growing market environments,” Srivastava said.
Breaking Apple and Samsung’s reign
Samsung still reigned supreme over the smartphone industry by a volume market share of 22 percent in Q2 2017, Counterpoint Research says, closely followed by Apple. But Samsung’s shipments remained almost flat quarter-on-quarter, the research indicates. Huawei, on the other hand, has steadily been catching up to its rivals.
Huawei retook the number two spot from Apple in Central and Eastern Europe in Q2 2017, according to Canalys research. The Chinese vendor shipped 1.8 million smartphones to take a 12 percent market share, beating Apple by fewer than 50,000 units. Its strength was in low-to-mid-range products, with the P10 Lite becoming its best-seller in the region.
“Huawei slipped behind Apple briefly in Q1 2017,” said Canalys Analyst Ben Stanton. “Apple did an excellent job of up-selling its installed base to the iPhone 7 Plus, whereas Huawei suffered the fallout from its extremely aggressive end to 2016. It built a great deal of channel inventory last year as its sales teams chased a 140-million-unit annual global shipment target. But Huawei is back, growing 11 percent in Q2 2017. Its inventory has now largely cleared and it is firing on all cylinders.”
Apple’s global smartphone market share declined due to seasonality this year, with iPhone sales growing just 1 percent year-on-year. But demand for older generation iPhones remains strong in markets like Russia, India, Vietnam, Indonesia and other fast growing markets. Many users are likely to delay their purchase of a new iPhone in anticipation of the much awaited iPhone 10th anniversary edition which is expected to be a super-cycle for Apple.
However, Apple’s decline in China has paved the way for Oppo, Xiaomi, Vivo and Huawei to take the lead. In China, Huawei continued to capture the top spot in 2Q17 ahead of its rivals, shipping higher volumes into the channels, according to Counterpoint. Huawei’s Nova and Enjoy series, along with flagship P10, were in strong demand during the quarter, and its share in the premium segment also expanded due to the strong performance of its Mate and P series.
Meanwhile, Oppo and Vivo were the fourth and fifth largest brands during the quarter, capturing market share of 8.4 percent and 6.6 percent respectively. Both brands posted record quarters in India, their strongest market outside China. Xiaomi emerged as the fastest growing brand year-on-year (+60 percent) surpassing Vivo (+45 percent) and Oppo (+33 percent) which were the fastest growing brands in the previous quarter.
Emerging markets like Africa and the Middle East also represent a great opportunity for Huawei. Gene Jiao, president of Huawei consumer business group Middle East and Africa (MEA) emphasized the importance of the region for Huawei at the end of 2016 following the launch of the Mate 9. He said MEA is an important market for Huawei to tap into, because of its growing population.
“The MEA region has 67 countries, with a population of 1.62 billion. Within ten years the population will grow by 400 million. In the next five years it will grow by 200 million,” said Jiao. For this reason, Jiao added, it makes perfect sense to expand into MEA, particularly with affordable products.
The GCC is the most developed part of MEA, and traditionally OEMs have targeted the region with high-end and premium range devices, consolidating to only a few major players. However, the GCC is now seeing the rise of the mid-range device segment, according to Qualcomm’s Mr. Srage. The main growth driver for this segment, he said, has been the advent of high quality devices at affordable prices.
Huawei has the advantage over its Chinese rivals that it’s already a major player in the sale of networking gear and telecommunications equipment. Last year, the company's top consumer executive, Richard Yu, set a target of becoming the No. 1 smartphone vendor within five years. Huawei is “committed to helping operators increase efficiency and drive profitable growth by promoting the sustainable development of emerging markets,” Yu said at Mobile World Congress this year.
Other emerging Chinese OEMs such as Lenovo and Alcatel continue to face tough competition in high growth markets like India and Latin America which led to the flat or declining market share respectively, during the quarter, according to Counterpoint. However, Mr. Srage commented positively about the companies for their strategic efforts in acquiring and reviving once trusted brands. Lenovo, for instance, revived the Motorola brand, and TCL revived Alcatel.
“These companies have taken existing brands that were once at the top and revived them with new products that aim to recapture their customer base,” said Srage. “The real challenge, however, is for these companies to capture the attention of customers who aren’t familiar with these once prominent brands, and reestablish loyalty with those who are.”
According to the latest research from Strategy Analytics, global smartphone shipments grew 6 percent annually to reach 360 million units in Q2 2017. Samsung maintained first position with 22 percent global smartphone marketshare, while Apple dipped to 11 percent share. Xiaomi surged 58 percent annually and rejoined the top five rankings for the first time in a year.
Linda Sui, Director at Strategy Analytics, said, “Global smartphone shipments grew a solid 6 percent annually from 341.5 million units in Q2 2016 to 360.4 million in Q2 2017. The global smartphone market has settled into a steady rhythm of single-digit growth this year, driven by first-time buyers across emerging markets like Africa and upgrades to flagship Android models in developed regions such as Western Europe.”
Samsung shipped 79.5 million smartphones worldwide in Q2 2017, rising 2 percent annually from 77.6 million units in Q2 2016, said Neil Mawston, Executive Director at Strategy Analytics. Samsung continued its recovery from last year’s Galaxy Note 7 battery fiasco, lifted by robust demand for the new Galaxy S8 portfolio with an innovative bezel-less design, he added.
“We expect the rumored Galaxy Note 8 upgrade with a bigger screen to further strengthen Samsung in the coming weeks. Apple grew 1 percent annually and shipped 41.0 million smartphones for 11 percent marketshare worldwide in Q2 2017, down slightly from 12 percent a year ago.”
Apple’s iPhone has gone out of fashion in China and this is placing a cap on its worldwide performance, Mawston added. Attention will now turn to Apple’s rumored iPhone 8 introduction later this year and whether its tenth-anniversary flagship model will be different or exciting enough to ignite a rebound in iPhone volumes for the important Q4 2017 Western holiday season.
Woody Oh, Director at Strategy Analytics, said, “Huawei maintained third position with a record 11 percent global smartphone marketshare in Q2 2017, up from 9 percent a year ago. Huawei is now closing in fast on Apple and Apple will be looking nervously over its shoulder in the next few quarters. Huawei is outperforming across Asia, Europe and Africa with popular Android models such as the P10 and Mate 9.”
Linda Sui, Director at Strategy Analytics, added, “OPPO shipped a healthy 29.5 million smartphones and maintained fourth position with a record 8 percent global marketshare in Q2 2017. OPPO grew an impressive 64 percent annually in the quarter, taking share from major rivals like ZTE, LG and TCL-Alcatel across China, India and Europe.”
Xiaomi soared 58 percent annually and recaptured fifth place for the first time in a year, taking a record 6 percent global smartphone marketshare in Q2 2017, leaping from 4 percent in Q2 2016, Sui said.
“Xiaomi’s range of Android models, such as the Redmi 4A, is proving wildly popular in India, snatching volumes from competitors such as Lenovo and Micromax. Xiaomi has bounced back since ex-Google exec, Hugo Barra, quit the company earlier this year and Xiaomi will be hoping the current momentum can be sustained into the second half of 2017.”
Chinese smartphone maker OPPO announced that it has partnered with renowned research center NYU WIRELESS at the NYU Tandon School of Engineering to sponsor research aimed at creating the next generation of wireless technologies.
OPPO will collaborate with NYU WIRELESS on 5G network technology and work with students and faculty on 5G related research projects. NYU WIRELESS is a recognized international academic leader in 5G research that links its affiliates, as well as researchers at other universities, in its seminal 5G mmWave research. Its research was cited by the Federal Communications Commission (FCC) when the commission explored the future of millimeter technology.
Additionally, OPPO attended the fourth annual Brooklyn 5G Summit, which was held April 19-21, 2017 at NYU. The summit focused on overall 5G system design progress in 5G channel modeling, 5G regulatory issues, and practical uses for 5G in the “Internet of Things” (IoT) realm. The event was expected to draw global leaders from wireless technology, automotive industry, health care, academic and government arenas.
“We look forward to working closely together and consider it an honor to be collaborating with OPPO, which is one of the leading global manufacturers of mobile phones,” said Sundeep Rangan, associate professor of electrical and computer engineering at NYU Tandon. “OPPO has a reputation for rapidly bringing new technologies to market, and thus the research collaboration with NYU WIRELESS has the potential to generate tremendous impact as we progress toward 5G networks with thousand-fold increases in data capacity.”
“NYU WIRELESS has been a major source of innovation in the frontier of telecommunications technologies, and we are delighted to join NYU WIRELESS industry affiliate program,” said Hai Tang, the OPPO director of standardization.
“As one of the top smartphone vendors in the world, we are committed to developing a promising next-generation mobile communication technology, commonly known as 5G. And I believe the close collaboration between OPPO and NYU WIRELESS, as well as potential industrial collaboration inspired by the 5G Summit, will play an important role in the future evolution of the industry.”
OPPO is “committed” to technological innovations. Cooperation with NYU WIRELESS confirms that, with strong technology capabilities in the telecommunications industry, OPPO is capable of rapidly bringing new technologies to the market. This partnership not only enhances OPPO’s technological influence, but also further boosts global 5G research.
IDC has released its latest Asia/Pacific Quarterly Mobile Phone Tracker saying it shows OPPO has become the leading smartphone vendor in the Chinese market, shipping 20.1 million units and gaining a market share of 17.5 percent in Q3 of 2016.
OPPO’s rise has been dramatic. According to IDC’s figures it has more than doubled its shipment volumes and market share since Q3 2015 when it shipped 9.8 million units and had a 9.0 percent market share.
vivo also grew dramatically to reach number two position with 19.2 million units shipped and 16.7 percent market share, up from 9.5 million and 8.8 percent in Q3 of 2015.
2015 Q3 market leader Xiaomi has suffered a dramatic 42.3 percent decline in its fortunes to number four position. Volumes were down from 17.3 to 10.0 million and its market share down from 15.9 to 8.7 percent.
Apple also did very badly with a 34.1 percent decline from 12.4 to 8.2 million units and a market share decline from 11.4 to 7.1 percent, putting it in fifth position.
Former market leader Huawei managed a modest 5.1 percent growth but the runaway success of OPPO and vivo relegated it to third position with 18.0 million units shipped and a 15.7 percent market share.
IDC said OPPO and vivo had risen because the Chinese market had evolved beyond operator and online driven channels to an offline structure that dovetailed with OPPO and vivo’s strengths.
“There were three key growth phases of the Chinese smartphone market seen in the past few years,” IDC said. “The first phase (before 2014) was when it was driven mainly by operators. Samsung, Lenovo, and Coolpad led the smartphone market then with the help of huge subsidies offered by operators.
“In the second phase (2014-2015), with e-commerce booming in China, Xiaomi was one of the first vendors that rode on that e-commerce wave and disrupted the market by selling its phones online through its flash sales. That kicked off another trend as other vendors soon tried to follow suit and created their own online brands and sold their phones through their own websites and that of eTailers.
“The third phase unfolded in 2016, where the share of phones sold online has started to stabilize. OPPO and vivo triumphed due to their strengths in the offline channels especially in Tier 3 to Tier 5 cities. That, coupled with their other strengths in marketing and advertising, helped them to see strong growth in the market in 2016Q3.”
IDC said OPPO’s success had not been achieved overnight. “Back in the earlier years when vendors depended on operator subsidy to grow, OPPO was clear in its direction and focused on expanding its offline channels. It also had key strengths such as its VOOC fast charging technology and in the elegant design of its phones. This, coupled with its aggressive marketing tactics, helped it succeed in the market,” said Xiaohan Tay, Senior Market Analyst, Client Devices Research, IDC Asia/Pacific.