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Huawei Captures Top Spot in Russian Smartphone Market in Q4 2018

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

February 20th, 2019

Aggressive marketing in both online and offline channels helped Huawei achieve 91% year-on-year volume growth in Q4 2018 and overtook Samsung as the market leader.

With a 28% market share in Q4 2018, Huawei overtook Samsung as Russia’s top-selling smartphone brand, according to the findings of the latest Market Pulse service from Counterpoint Research. According to the findings, Huawei’s volumes grew 91% year-on-year as it claimed the top spot in the market.

Commenting on Huawei’s top position, Tarun Pathak, Associate Director at Counterpoint Research said, “Despite the decline in the overall market, Huawei managed to sell more than 2.6 million smartphones in Q4 2018 capturing the highest market share in Russia because of its diverse product line and its significant presence across all price bands. Huawei’s sub-brand Honor has helped it tap the affordable-premium and mid-price segments, which helped drive increased market share for the OEM. Also, Huawei has been aggressive in its marketing, be it through strong retail tie-ups or online banners on different e-commerce websites.”

According to Counterpoint Research’s findings, Russia’s smartphone sales volume declined 11% year-on-year during Q4 2018. This was the first time that the Russian smartphone market contracted. The decline was primarily because of the devaluation of the Russian Ruble, by more than 15%. The decline in the currency negatively affected the prices of imported handsets. Other reasons for the decline include the fall in Apple’s shipments, a decrease in Russia’s GDP during Q3 2018 and a lengthening replacement cycle.

Commenting on the overall market, Abhilash Kumar, Research Analyst at Counterpoint Research said, “Global and Chinese OEMs are more popular than local OEMs and account for more than 80% of the market in Russia. Due to economies of scale, foreign players can provide better offerings at lower prices leading them to marginalize local players. One consequence is that the average selling price of smartphones in Russia is increasing due to an increase in disposable incomes, evident in the growing mid-level segment.”

Russia Smartphone Sales Market Share Comparison

Source: Russia Model Share Tracker

Market Summary:

  • 84% of the total smartphone market was captured by the top five players.
  • Huawei grabbed the top position capturing 28% market share during Q4 2018 and saw a 91% year-on-year growth.
  • Overall in 2018, Samsung was the market leader with a 28% market share followed by Huawei (24%).
  • The reason behind Huawei’s growth was its balanced portfolio and its aggressive marketing in both online and offline channels. Honor 7A was the top-selling device in Q4 2018.
  • Local player Bright & Quick was able to secure a position in the top five smartphone brands due to its strong portfolio in the sub-US$100 segment.
  • Apple saw a decline in sales volume by more than 30% year-on-year. However, in terms of value, it remained number one with more than more than 35% value share.
  • Local players are mainly restricted to the sub-US$99 segment because of very tough competition and better offerings from foreign players in other price segments.
  • Local player, INOI witnessed a significant increase in the market share.
  • Large screen phones are more popular in Russia and around 82% of the smartphones sold had a display of five inches or more.

 

Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

 

Background:

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in high-tech industries.

 

Press Release Contacts:


Tarun Pathak

+91 9971213665

tarun@counterpointresearch.com

Abhilash Kumar

+91 7084690829

abhilash@counterpointresearch.com

Brazil Smartphone Market Shows Signs of Recovery

Growth for global brands was almost flat, whereas Chinese brands declined annually.

   New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – July 19th, 2018

According to the latest research from Counterpoint’s Market Monitor service, the Brazil smartphone market showed positive signs of growth with 2% YOY growth in Q1 2018.

Commenting on the findings Senior Analyst, Tina Lu, said, “Although Brazil’s economy has been stable since last year, its mobile device market started 2018 with mixed results. Overall mobile devices decreased, while smartphones increased marginally. This is a preview of what we expect for the rest of the year. Some uptick, but mainly stable or even some decrease as Brazil faces presidential elections in October this year, and uncertainty about its outcome is prompting the market to be cautious.”

Commenting on regional growth, Research Analyst, Parv Sharma, said, “Due to high barriers to entry, Brazil’s smartphone market is very consolidated. The top five smartphone brands accounted for almost 85% of the total smartphone market in Q1 2018. However, this brand landscape will be challenged by Huawei, which is planning to re-enter the market by partnering with Brazilian consumer electronics manufacturer, Positivo, in the latter part of Q3 2018.”

Parv, also highlighted, “We saw an increase in the lower price bands. More than 80% of the market lies below USD199, around a 7% increase from the same quarter last year. This was driven by an increasing focus from the top three brands Samsung, Motorola and LG. As a result, their models dominate the sub- USD199 price band. Although Samsung launched the 2018 version of the J series, it kept the older generation series in the market, as they were still contributing to the majority of Samsung’s sales.”

Exhibit 1: Brazil Smartphone Shipments Share by Brands

Brazil Smartphone Shipments Share by Brands

Source: Counterpoint Research: Quarterly Market Monitor Q1 2018

Market Summary:

  • Brazil’s smartphone market grew slightly, 2.3% YoY, during Q1 2018.
  • The smartphone segment contributed almost 93% of the total handset shipments during Q1 2018.
  • Samsung had almost half the share of the smartphone market. This shows its strong grip on the Brazil market due to robust local manufacturing and high levels of marketing spend on promotional campaigns.
  • Brazil is an important market for Motorola, it had a 19.8% share in the smartphone market and a healthy 20% YOY growth in Q1 2018.
  • LG saw a 10% decline annually but maintained its third position in the smartphone market with an 11.4% share.
  • Apple held the fourth position in the smartphone market with a 5.7% share in Q1 2018. Apple has lost share since it decided to stop assembling in Brazil.
  • Local player Positivo was the fastest growing brand with 33% annual growth. It had a 1.9% share, holding the fifth position in the Brazil smartphone market.
  • In terms of SOC’s, Mediatek dominated the smartphone market with a share of almost 38%. Samsung holding the second position, captured one third of the total smartphone market followed by Qualcomm, Spreadtrum and Apple.

Exhibit 2: Brazil Smartphone Market – Price Band Share by Quarter: Q1 2018

Brazil Smartphone Market – Price Band Share by Quarter: Q1 2018

Source: Counterpoint Research: Quarterly Market Pulse Q1 2018

  • Low to mid-end price bands dominate the Brazil smartphone market. Almost half of the smartphone market lies in the USD 100-199 price band.
  • Both USD 0-99 and USD 100-199 price bands grew annually in Q1 2018.
  • Samsung clearly dominates almost all the price bands except the USD >500 price band. Samsung’s success is dependent on its J series, as the top four bestselling smartphones were from Samsung and had a share of about 22% of the smartphone market.
  • Motorola was ranked in second position in the USD 0-99 and USD 100-199, this is because of the its low-end segment Moto C and C Plus models.

The comprehensive and in-depth Q1 2018 Market Monitor is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our latest research, insights or press enquiries.

The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.

Analyst Contacts:

Tina Lu
+54 91160411221
tina@counterpointresearch.com

Parv Sharma
+91 974-259-6030
Parv@counterpointresearch.com

Peter Richardson
+44 791-723-1934
Peter@counterpointresearch.com

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