Strategy Analytics: China Smartphone Shipments Grow 4 Percent in Q2 2016

BOSTON, July 28, 2016 /PRNewswire/ -- According to the latest research from Strategy Analytics, China smartphone shipments grew 4 percent annually to hit 109 million units in Q2 2016. Huawei held on to first position and captured 18 percent smartphone marketshare in China, followed by fast-growing OPPO in second place.

Linda Sui, Director at Strategy Analytics, said, "China smartphone shipments increased 4 percent annually from 105.1 million units in Q2 2015 to 109.0 million in Q2 2016. China returned to growth for the first time in a year due to improved LTE volumes from local brands, robust operator promotions, and a stabilized economic situation. China remains by far the world's largest smartphone market, accounting for nearly 1 in 3 of all 340.4 million smartphones shipped globally this quarter."

Neil Mawston, Executive Director at Strategy Analytics, added, "Huawei shipped 19.1 million smartphones for 18 percent marketshare in China during Q2 2016, growing 15 percent annually from 16.6 million units in Q2 2015. Huawei remains the number one smartphone vendor in China, but this was Huawei's slowest growth rate for two years and the competitive pressure from OPPO, Vivo, LeEco and other rivals is rising fast. OPPO shipped 15.2 million smartphones and captured a record 14 percent marketshare in China in Q2 2016. OPPO's smartphone shipments grew an impressive 108 percent annually. OPPO's R and A series models have been well received in second-tier cities and rural areas of China. OPPO's latest technology innovations, such as ultra-fast battery-charging, have also helped it gain more attention in top-tier cities such as Shanghai."

Woody Oh, Director at Strategy Analytics, added, "Vivo nudged up to third position for the first time ever with 12 percent smartphone marketshare in China during Q2 2016, up significantly from 7 percent a year ago. The success of Vivo lies in good hardware designs, robust product quality, strong retailer penetration, and rising brand awareness among mass-market consumers. In contrast, Xiaomi had a weak quarter, falling 34 percent annually and shipping 12.8 million smartphones in China in Q2 2016. It slipped to fourth position with 12 percent marketshare, down from 19 percent one year ago. Xiaomi is facing tough competition in mid-tier segments from Huawei, Gionee, LeEco and others."

Linda Sui, Director at Strategy Analytics, added, "Apple posted a soft quarter in China, maintaining fifth position with 7 percent smartphone marketshare in Q2 2016, down from 9 percent a year ago. Mixed demand for the iPhone 6s, overstocked volumes in channel from previous quarters, as well as stronger competition from Huawei, OPPO and others were among the key factors for its lackluster performance."

Exhibit 1: China Smartphone Vendor Shipments and Marketshare in Q2 2016 ¹

The full report, China Smartphone Shipments Vendor and OS Market Share: Q2 2016 is published by the Strategy Analytics Handset Country Share Tracker (HCST) service, details of which can be found here: http://tinyurl.com/zbdto2z.

About Strategy Analytics:

Strategy Analytics is a global, independent research and consulting firm. The company is headquartered in Boston, USA, with offices in the UK, France, Germany, Japan, South Korea, Taiwan, India and China. Visit www.strategyanalytics.com for more information.

Americas Contact:
Linda Sui / +1 617 614 0735 / [email protected]

EMEA Contact:
Neil Mawston / +44 1908 423 628 / [email protected]

Asia Contact:
Woody Oh / +44 1908 423 665 / [email protected]

¹ Numbers are rounded.

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SOURCE Strategy Analytics

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