From July to September, the world’s second-largest smartphone retailer shipped 41.5 million phones to the Chinese market
The Chinese smartphone market is probably the most coveted in the world. This market, in particular, is dominated by Chinese companies and foreign brands have only a small share.
Dominating the Chinese market is surely Huawei Technologies Co, which gained a record 42 percent share in the national smartphone market during the third quarter of this year. According to a new report on Wednesday, although most of its competitors have experienced strong declines, Huawei has managed to record an annual growth rate of 66 percent.
Huawei shipped 41.5 million phones on the Chinese market from July to September, further extending its market as local consumers lent support to the Chinese brand that faces obstacles from the US government.
Market research firm Canalys showed that the Chinese smartphone market still contracted by 3% in the third quarter compared to a year earlier. However, Huawei has achieved a sixth consecutive quarter of double-digit growth during the period.
Huawei continues its strong sales performance in China
“Huawei has opened up a huge gap between itself and other vendors. It has over 25 percent more shares than this season’s runner-up,” said Nicole Peng, vice president of mobility for Canalys.
The main rivals, Vivo, Oppo, Xiaomi and Apple, classified in this order, further reduced. Their combined share represented only 50 percent of the market, down from 54 percent in the second quarter of 2019 and from 64 percent in the third quarter of 2018.
Peng said: “The dominant position gives Huawei a lot of power to negotiate with the supply chain and increase its portfolio share within the channel partners. Huawei is in a strong position to further consolidate its dominance between the launch of the 5G network, given its close relations with telecommunications operators and control over key components such as 5G-compatible chipsets with local networks “.
The next challenge for Chinese smartphones will be the full exploitation of 5G
The new 5G technology could change the smartphone market. China Mobile, China Unicom and China Telecom have already promoted the pre-registration of 5G with abundant discounts and free allowances for 5G data and have managed to attract the interest of over 10 million subscribers.
Given that China is now under the Huawei brand, a number of small suppliers are increasing their drive to touch foreign markets. As Transsion Holdings Ltd, a phone manufacturer based in Shenzhen, which has been targeting consumers on the African continent for years.
Transsion said that the net profit attributable to the shareholders of the listed company in the first three quarters reached 1.3 billion yuan ($ 184 million), marking a year-on-year jump of 732 percent.
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