Redmi Note 13 series (left) and Redmi Note 13 Pro 5G.
The influence of Chinese smartphone manufacturers extends beyond China to the world. It is threatening Samsung Electronics and Apple, the ‘big two’ in the smartphone market, in major regions. As the global smartphone market is recovering to pre-COVID-19 levels, there are also predictions that the influence of Chinese manufacturers will grow further.
According to market research company Counterpoint Research on the 5th, the global smartphone market share of Chinese manufacturers (Xiaomi, Oppo, Vivo, etc.) in the third quarter of this year was 32%. It increased by 2 percentage points (P) compared to the same period last year. During this period, Xiaomi and Vivo recorded a market share of 14% and 9%, respectively, up 1 percentage point compared to the same period last year. Oppo maintained 8%.
Tarun Pathak, a researcher at Counterpoint Research, said, “Xiaomi continued its strong growth, increasing sales year-on-year for four consecutive quarters, and ranked second in August sales,” and added, “Vivo had the fastest growth among the top five companies in the third quarter. “We achieved superior results than our competitors,” he analyzed. During this period, Vivo is known to have ranked first in sales in China and India, the world’s largest smartphone markets. Regarding Oppo, the analysis said, “Oppo has shown the highest sales volume ever since the third quarter of last year.”
The good performance of Chinese manufacturers can be interpreted as the effect of a sales strategy focused on emerging countries. They have grown significantly in the Middle East, Africa, and Latin America with their ‘cost-effectiveness’. In some regions, a mix strategy was introduced to sell low-priced products and premium products together. In particular, it is analyzed that the fact that sales channels in emerging countries were established primarily offline rather than online led to an increase in sales. In the case of Xiaomi, it is known that it is putting more effort into offline stores in regions other than China.
During this period, Samsung Electronics and Apple, classified as the Big 2, failed to increase their market share. Samsung Electronics’ smartphone sales share was 19%, down 1 percentage point from the same period last year, and Apple’s was only 16%, the same as the previous year. Researcher Tarun Pathak analyzed, “Samsung Electronics led the market with continued demand for the Galaxy A series and the performance of the Galaxy S24 series, but received a somewhat lukewarm response to the foldable series.” Regarding Apple, it was evaluated as “stable demand for the iPhone 16 series.”
The industry expects that Chinese manufacturers will make strong progress in the future. This is because demand in the global smartphone market is reviving, and there are an increasing number of low-priced devices that support high performance. In particular, it is predicted that Samsung Electronics and Apple will have difficulty maintaining their current positions as the variety of options increases. An official familiar with the smartphone distribution industry said, “Many manufacturers are targeting emerging countries where there is a strong demand for replacement smartphones,” adding, “Emerging countries do not yet have sufficient purchasing power, so low-priced products are the main market. “Chinese manufacturers with many mid- to low-priced products are likely to make great strides,” he said.
Reporter Nam Gung-kyung nkk@etnews.com
