Chinese market shipments slowed in Q3 2017: Counterpoint

However, this year shipment growth was strong in the second quarter, resulting in many brands ending Q2 2017 with high inventory levels and leading to softer shipments in the third quarter.

By Priyanka
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According to the latest report by research firm Counterpoint, Chinese market shipments slowed in Q3 2017 compared to a strong quarter last year, while Q3 2016 was marked by robust growth by a number of brands including OPPO and Vivo.

Chinese market shipments slowed in Q3 2017: Counterpoint

 

However, this year shipment growth was strong in the second quarter, resulting in many brands ending Q2 2017 with high inventory levels and leading to softer shipments in the third quarter.

Commenting on the analysis, James Yan, Research Director at Counterpoint Research said, "Compared to last year, where OPPO and Vivo were the fastest growing brands in China with volumes up 109 percent year over year (YoY) and 78 percent YoY respectively, growth for these two brands has slowed down this quarter. Nonetheless, the two brands are still growing at a healthy rate and have closed on the previous quarter's leader, Huawei. OPPO's R11 was the bestselling model overall, which helped OPPO edge just ahead of Huawei during the quarter."

Yan continued, "Huawei's growth for the quarter (+23 percent YoY) was stronger than its performance in the same quarter last year. This was possible thanks to a wider portfolio across a broad range of price bands, catering to different consumers. In spite of this, Huawei couldn't keep up with OPPO and saw Vivo closing in as well, thanks to its X9 series."

The report said that OPPO, Huawei, Vivo, and Xiaomi have succeeded lately and all eyes are on Apple.

Commenting on Apple's performance and outlook, Counterpoint's Associate Director Tarun Pathak noted, "Apple shipments grew by 17 percent YoY driven by an increased mix of its older generation iPhones and channel fill for the iPhone 8 series. However, Apple exited the quarter with some iPhone 8 inventory due to softer than expected demand compared to the iPhone 7 series."

Pathak, further added, "We expect that the soft Apple sales are temporary because some of the 100 million-plus loyal iPhone users will upgrade to iPhone X and, if successful, it will help Apple to grow both volume and value as demand is likely to spread beyond normal cyclic quarters. Apple is still leading the premium segment (~$500 above) and the strong performance from iPhone X will further consolidate Apple's leadership in the segment."

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