Q2 2015 : China :: Xiaomi Jumps to Top Spot While Huawei, Apple & Vivo Outgrows Competition

Counterpoint Research team of Analysts have completed preliminary sizing of the China smartphone market as few OEMs have already released their Q2 2015 (Apr-June) performances. Following are our preliminary market share and rankings according to our quarterly Market Monitor service.

  • The overall China smartphone market declined 2% YoY but increased 4% sequentially.
  • The weak growth was a result of muted economic environment, smartphone market saturation and lack of product related catalysts
  • Apart from this the reduction of subsidies by all three operators also led to slow smartphone growth during the quarter. Consumers will tend to withhold purchasing if prices suddenly rise or they expect them to come down in future
  • Xiaomi led the China smartphone market with a 15.8% share in Q2 2015.
  • Xiaomi’s performance in China improved after a two quarter dip as it cleared out some older inventory left in the market and refreshed its portfolio with newer LTE models
  • Redmi 2 and Mi Note were Xiaomi’s best-selling models during the quarter, global rollout and performance in other key markets such as India is helping Xiaomi to build some scale
  • Huawei climbed to second spot with a market share of 15.4% in China smartphone market during Q2 2015 after a strong performance globally.
  • It remained aggressive on pricing and distribution to capture market share in saturating market like China , a notable feat during the quarter.
  • Huawei’s rise was mainly due strong demand for its sub-brand Honor smartphones and models such as latest Ascend Mate and G series.
  • Apple captured third sport during the Quarter with a market share of 12.2%,
  • However, the market share of Apple declined during the quarter but the vendor shipments in China remained strong despite the fact its flagship iPhone 6 series undergoes seasonality factor.
  • China continues to be one of the important market for Apple. China revenues more than doubled (112% YoY) during the quarter
  • China is on track to contribute almost US$60 Billion in revenues to the Apple’s total revenues and almost US$15 Billion in Operating income during CY2015
  • Apple continues to attract and penetrate middle class Chinese consumers apart from the huge base of wealthy urban Chinese consumers
  • Vivo climbed to fourth spot surpassing Samsung to capture 8.1% market share during the quarter for the first time ever.
  • Vivo’s was one of the fastest local brands during the quarter with a YoY growth of close to 250%
  • Vivo continue to pursue aggressive go to market strategy with leaner and competitive product portfolio which not only helped to gain market share in China but also in SEA and India during the same quarter.

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Source : Counterpoint Research China Market Monitor Q2 2015

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