Media alert: Vivo takes second place in China as market keeps on growing

Smart phone shipments in China grew by 2% year on year to over 105 million units in Q1 2016. Huawei, Vivo, Xiaomi, Oppo and Apple made up the top five, with Vivo taking second place for the first time. ‘Q1 was a promising start to 2016 for China. The Chinese market outperformed the global market, which contracted for the first time in its history, and there are no signs of a slowdown in consumer spending. Buyers are looking for the best designs and most innovative user experiences, as well as great quality at the best price. This means that vendors such as Apple, Lenovo and Xiaomi suffered as they lacked new flagship models to tempt customers in the first three months of the year,’ said Jessie Ding, a Canalys Research Analyst based in Shanghai.

Apple struggled in China as iPhone shipments fell by around 15% on a year ago, compounding the effect of currency on revenue. ‘Local vendors, such as Huawei, Vivo and Oppo, are eating into the premium segment that Samsung and Apple considered their own,’ said Ding. Market leader Huawei shipped 16.5 million smart phones in Q1, a 48% year-on-year increase, while Xiaomi is under tremendous pressure to regain its growth momentum. ‘Huawei has delivered on its strategy to boost shipments in the premium segment and this has had a knock-on effect throughout its portfolio. But the market moves extremely fast and continues to be disrupted by new players, such as Meizu and LeEco, which are expanding with aggressive pricing models. But Xiaomi’s performance shows that companies that bet on low-income consumers to expand will fail to build loyalty.’

http://www.canalys.com/chart/graph.php?id=606&cs=d8e99ca4ec75

If you are interested in further information, please contact us:

       Canalys Americas: +1 650 681 4488
Chris Jones: chris_jones@canalys.com +1 650 450 1513
Daniel Matte: daniel_matte@canalys.com +1 650 384 9733

       Canalys APAC: +65 6671 9399 (Singapore) / +86 21 2225 2888 (China)
Rushabh Doshi: rushabh_doshi@canalys.com +65 9820 0071 (Singapore)
Nicole Peng: nicole_peng@canalys.com +86 150 2186 8330 (China)

       Canalys EMEA: +44 118 984 0520
Tim Coulling: tim_coulling@canalys.com +44 7900 991 852
Rachel Lashford: rachel_lashford@canalys.com +44 7775 503 940

About Canalys                                                                     

Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. Our customer-driven analysis and consulting services empower businesses to make informed decisions and generate sales. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

To view the chart(s) from this media alert, and others from Canalys, download the new Insight @Canalys app today from the Apple App Store, the Google Play store or as an HTML 5 web app.

Receiving updates

To receive media alerts directly, or for more information about our events, services or custom research and consulting capabilities, please complete the contact form on our web site.

Alternatively, you can e-mail press@canalys.com or call +1 650 681 4488 (Palo Alto, California, USA),
+65 6671 9399 (Singapore), +86 21 2225 2888 (Shanghai, China) or +44 118 984 0520 (Reading, UK).

Copyright © Canalys 2016. All rights reserved.

Americas: Suite 316, 855 El Camino Real, Palo Alto, CA 94301, US | tel: +1 650 681 4488
APAC: Room F/G, 7/F, Jinjiang Xiangyang Tower, 993 Nanjing West Road, Jing An District, Shanghai, 200041, China | tel: +86 21 2225 2888
APAC: 133 Cecil Street, Keck Seng Tower, #13-02/02A, Singapore 069535 | tel: +65 6671 9399
EMEA: Diddenham Court, Lambwood Hill, Grazeley, Reading RG7 1JQ, UK | tel: +44 118 984 0520
e-mail: inquiry@canalys.com | web: www.canalys.com