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Gartner: Samsung and Apple lose ground to Chinese players

Gartner says a trio of Chinese manufacturers accounted for a quarter of global smartphone sales during Q1, similar to what the IDC had stated.
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Published onMay 23, 2017

The OPPO logo.

Gartner says a trio of Chinese manufacturers accounted for a quarter of global smartphone sales during Q1, similar to what the IDC had stated.

Why the US market is so hard to crack
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We previously reported that despite Samsung’s leading worldwide smartphone shipments, the International Data Corporation attributed global sales growth to Chinese OEMs like HUAWEI, OPPO, and vivo. IDC’s data indicated that a total of 347 million devices were shipped during Q1 of 2017, and in contrast to Samsung and Apple’s near-zero percent year-over-year growth, the aforementioned Chinese trio all saw double-digit growth. Well, Gartner just released their own data regarding the global smartphone market, and it only seems to confirm the rapid rise of Chinese manufacturers.

The general landscape looks familiar: among the 380 million devices sold to end users, most were Samsung-made, followed by Apple. Samsung saw a decline compared to its market share during Q1 of 2016, which Gartner’s Anshul Gupta explains was partially due to the absence of a Note device last year. More importantly, however, neither of these two saw a sales jump precisely because of the increasing competition from Chinese brands.

The real story here is just how fast these Chinese electronics companies are catching up.

Indeed, a trio of Chinese companies – HUAWEI, OPPO, and vivo – rank third, fourth, and fifth respectively in the number of devices sold during this past quarter. Companies like OPPO and vivo, in particular, saw tremendous year-over-year growth, with OPPO retaining its No. 1 position in China. The real story here is just how fast these Chinese electronics companies are catching up. Just last year, the total market share of these three brands came out to be around 16 percent. This year, they account for a quarter of all smartphone sales. With offline retail strategies and affordable yet premium-looking devices, Chinese manufacturers are set to grow even further in highly lucrative markets like India and China.

And of course, thanks to Samsung’s lead and the rapid growth of Chinese OEMs, the gap between Android and iOS is widening. Of the 380 million devices sold during this past quarter, 327 million were Android devices, which equates to 86 percent in market share. In contrast, a total of 52 million iOS devices were sold, meaning a slight decrease in market share compared to last year’s Q1.

Do you think Chinese manufacturers like HUAWEI and OPPO will continue to see significant growth? Or will their growth plateau? Let us know your thoughts in the comments below!

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