China smartphone market falls 16% in Q4 to 114.3 mln units

Tuesday 6 February 2018 | 15:45 CET | News

China's smartphone market declined 15.7 percent year-on-year in Q4 2017 to 114.3 million units and 4.9 percent for the whole of 2017, according to preliminary data from IDC. In terms of shipped units, Huawei was market leader in Q4 with a 21.3 percent share, followed by Oppo with 17.5 percent, Vivo with 16.5 percent, Xiaomi with 13.9 percent, Apple with 12.9 percent and others with 18 percent. 

Apple’s share increased year-on-year and quarter-on-quarter in the >USD 600 premium segment. Apple’s ASP increased by 23.9 percent year-on-year in Q4 2017 largely due to iPhone X shipments. Even though Apple’s shipments faced a slight year-on-year decline, it remains the only company that dominates the >USD 600 premium segment in China. In 2017Q4, Apple alone made up 85 percent of the overall shipments in that segment.

Huawei appears on the radar to compete with Apple in the >USD 600 premium segment. Huawei grew in Q4 largely due to the strong shipment for both its Honor and Huawei branded phones in the <USD 200 segment. Its main strength is that it has the Honor, Huawei and Nova branded phones that cover the different segments of the market.

The Singles’ Day sale also helped to push its Honor-branded phones in the market. While Huawei’s overall share in the >USD 600 premium segment still remains low, it has grown from making up 2 percent of the shipments in this segment in Q4 2016 to 8 percent in Q4 2017.

The market researcher said Oppo and Vivo were focusing more on the mid-range segment, with a higher share of their portfolio focused on the mid-range segment compared to a year ago. The reduction in the number of Oppo and Vivo models in the low-end segment also contributed to their year-on-year decline in Q4 2017.

While focusing more on the mid-range segment has hurt its overall shipment growth, Oppo and Vivo’s overall ASPs have increased year-on-year. In terms of revenue, Oppo ranked second to Apple and was above Huawei. vivo follows at fourth place. Thus, while Oppo’s shipments may have declined, it is growing in terms of its overall revenue.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

::: add a comment