The percentage growth in global smartphone shipments of Oppo, Vivo, and Huawei trumped the sales growth of companies like Apple, Samsung, Lenovo, etc.
Global shipments of Original Equipment Manufacturers (OEMs) in the July - September quarter saw the shipments three Chinese brands -- Vivo, Oppo, Huawei -- grow in percentage terms, while the shipments of established players like Apple, Samsung, LG, Xiaomi, Lenovo (with Motorola), saw a decline (percentage terms).
Vivo was the star performer, a report from Counterpoint said. It was the fastest growing smartphone brand globally in the quarter under consideration, with shipments up 116% year-on-year.
In the July - September quarter, global smartphone shipments, although at a record third quarter figure, grew only 5% on an on-year basis and 7% sequentially, the report said. Global shipments of smartphones grew to 380 million in the period.
According to Counterpoint, the global shipments of Vivo grew 115.7%; Oppo's grew 100%, while Huawei's shipments grew 22.6%. Compared to this, the global shipments of Apple were down 5.2%, Samsung, 9.5%; LG, 9.4%; Alcatel, down 10.8%, Xiaomi, down 12.1%, and Lenovo (including Motorola), down 25.5%.
Image Source: Counterpoint Research
Counterpoint Research Analyst Shobit Srivastava, said, "The trio of Chinese brands -- Huawei, Oppo, and Vivo -- continue to impress with demand for their smartphones in key geographies helping them generate global level scale."
Srivastava said, "an expansion of their distribution networks, aggressive promotions and a balanced and higher quality portfolio have been key success factors for these Chinese brands, which combined, now control more than 20% of the global smartphone shipments." Next year, however, expanding in western markets will be critical to reduce over dependence on their domestic market," he added.
Image Source: Counterpoint Research
The report said Huawei's smartphone market share climbed to 9% versus 7% from a year ago. Upstart Chinese brands like Oppo and Vivo continued their shipment momentum with record performances in China, grabbing the top two spots in the domestic market for the first time ever.
"Oppo almost doubled its shipments annually to a record 26 million units, inching closer to Huawei. Oppo registered positive growth not only in China but in overseas markets India, Indonesia, and Thailand, during the quarter, with strong demand for its flagship R9(F1 Plus) and low-end A series.
For Vivo, the fastest growing smartphone brand globally, China and India made up 95% of the shipments' volume.
Revenue growth
The revenues of the three Chinese brands -- Huawei, Oppo, and Vivo -- grew 91%, 73%, and 90%, respectively, annually. Both Oppo and Vivo surpassed Huawei in China to become the number one and number two brands, respectively, in terms of revenue share.
Image source: Counterpoint Research
Huawei was the sixth largest brand in revenue terms, however, the on year, the Chinese brands saw their revenue decline 13% as the product mix shifted towards lower ASP models like Redmi 3S.
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