IDC report on China’s smartphone market in the third quarter of 2019 – iPhone 11 series, Apple’s savior
According to Will Wong, research director of consumer devices in IDC’s Asia/Pacific division, the increase in the share of Huawei in the Chinese market, at the cost of reducing the share of other market players. However, Apple has managed to resist this trend. and maintain its position by relying on brand reputation and competitive pricing strategy. Apple’s success in maintaining its market share is in a situation where trade tensions between the United States and China have risen and the company has not yet presented a smartphone compatible with the fifth generation technology.
In the quarter ending September 2019, Huawei was able to put pressure on its competitors by recording the largest market share. With a 42% share of the Chinese market, the Chinese giant has experienced a 64.6% increase in terms of supply compared to last year. Between the first and fifth places, i.e. Huawei and Apple companies, respectively Vivo, Oppo and Xiaomi, all of which faced a decrease in supply in this quarter. With a long distance from Huawei, Vio has only 18.3% of the market share and after this company, Oppo with 16.6%, Xiaomi with 9.8% and Apple with 5.6% growth in supply and 8.2% of the market share in the third places. They are ranked fifth.
The IDC institute continues its report on the status of the top five manufacturers in the Chinese market. In the last chapter, it has been examined:
Market share Huawei in this The quarter has reached a historical peak of 42%, which was achieved following the increase in demand for the company’s products and strong participation in sales channels. While the Enjoy series phones (equivalent to Changxiang in China) and Nova have been the main drivers for the company’s product sales, advanced smartphones such as the Mate and P series have also brought attractive profit margins to sales channels.
This strategy has played a vital role in maintaining Huawei’s performance in China. Although IDC has not published its forecast of Huawei’s performance in the fourth quarter of 2019, it seems that the company will be able to maintain its supply volume in the fourth quarter at the same increasing rate thanks to high sales during the holiday season. In fact, if this trend is maintained, Huawei can increase its share to more than 50% for the first time and reveal its dominance over the Chinese market even more.
In the last season, this Chinese brand had 18.3% of the market with the supply of 18.1 million units of smartphones, which compared to the supply of 22.3 million and a market share of 21.8% in the third quarter of last year, a decrease of It shows 18.9 percent.
Company Vivo has continued to focus on the $150-$200 and $200-$400 price ranges with its Y and Z series models in the third quarter of this year. iQOO series phones have also improved the performance of the Chinese manufacturer this season and targeted users interested in using high-end technologies. In addition, the model compatible with the fifth generation technology of this smartphone with a competitive price has been able to attract the attention of the market.
This company has managed to sell 16.4 million units of smartphones in the last quarter, which indicates a decrease of 21.7% compared to 21 million units last year. Oppo most of last season to the process of organizing and improving the position of the series The new Reno has passed. Also, A-series phones have been the most important driving force of this brand, especially in the low-end product segment. According to the IDC report, the Chinese manufacturer is focusing its efforts mainly on market demand for 4G phones, but by controlling its product inventory, it is preparing for the 5G market boom next year.
In the last quarter, this company was able to sell only 9.7 million smartphones and took 9.8% of the market share; A figure that shows a 30.5% drop compared to the same period last year. IDC experts significantly reduced the supply of Xiaomi in the third quarter of this year Most of all, Milady is associated with continuing challenges arising from internal and organizational changes, managing offline sales channels and trying to differentiate between the two Mi and Redmi brands.
Although Apple since last year It is having a tough time in China, but the IDC report shows that the company’s new iPhones have finally ended Apple’s long periods of decline in China. Apple, as the only non-Chinese company in this list, was able to experience an annual growth of 5.6% in the last quarter; Growth caused by competitive pricing and significant improvement in camera and battery quality The new iPhone 11 series has been realized. In addition, according to IDC researchers, the simple low-end model of this company, which was released in the second quarter of this year, has been another factor in the annual growth of the Cupertino giant.
In general, the IDC report shows that in the coming seasons, fifth generation technology will be the key element in the growth of the smartphone market. According to Xi Wang, research director of IDC in China’s customer system research department, the attention of Chinese users is mainly shifting towards products compatible with fifth generation technology. However, these consumers are expecting mid-range 5G smartphones at affordable prices; This means that the replacement cycle of phones will be prolonged. From his point of view, it will be a very important issue to manage the inventory of the sales channel of the fourth generation products until the complete transition to the era of the fifth generation technology and products based on this technology.