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Top three Chinese smartphone manufacturers are driving sales: Gartner
Samsung's smartphone sales declined 3.1 percent in the first quarter of 2017.
According to the new report by Gartner, the top three Chinese smartphone manufacturers are driving sales with their competitively priced.
The report said that the shift in buyer preference is positively affecting Chinese manufacturers such as Huawei, Oppo, and Vivo in their strategy to build desirable features at affordable prices. Their combined market share in the first quarter of 2017 accounted for 24 percent, up 7 percentage points year on year.
"The top three Chinese smartphone manufacturers are driving sales with their competitively priced, high-quality smartphones equipped with innovative features," said Anshul Gupta, research director at Gartner.
He said, "Furthermore, aggressive marketing and sales promotion have further helped these brands to take share from other brands in markets such as India, Indonesia, and Thailand."
Samsung's smartphone sales declined 3.1 percent in the first quarter of 2017.
"Although Samsung announced that preorders for the Galaxy S8 and S8 Plus are up 30 percent year over year, the absence of an alternative to Note 7 and the fierce competition in the basic smartphone segment are leading Samsung to continuously lose market share," said Gupta.
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"Sales of iPhones were flat, which led to a drop in market share year over year. Similar to Samsung, Apple is increasingly facing fierce competition from Chinese brands Oppo and Vivo, among others, and its performance in China is under attack," he pointed out.
While Huawei edged closer to Apple with smartphone sales amounting to 34 million units in the first quarter of 2017. Despite its P9 and P9 Plus being available for more than a year now, both smartphones continued to sell well, positioning Huawei as a dominant brand in the consumer market.
"Huawei has now steadily held the third spot in the worldwide ranking of smartphone vendors," said Gupta. "However, pressure is mounting as its counterparts in China are catching up," Gartner said.
Oppo is continuing to catch up with Huawei. With a 94.6 percent increase in worldwide smartphone sales in the first quarter of 2017, Oppo achieved the best performance of the quarter and retained the No. 1 position in China. "Oppo continued to rally sales through a large network of brick-and-mortar retailers, beating market incumbents such as Samsung and Huawei," Gupta said.
Oppo's strategy - centered on the camera, fast charging and offline retail - has helped it grow smartphone sales in the international market.
Meanwhile, Vivo sold almost 26 million smartphones and achieved a market share of 6.8 percent, which helped it achieve growth of 84.6 percent in the first quarter of 2017. "Vivo saw growing demand for its smartphones from the emerging markets in Asia/Pacific, including India, where sales grew over 220 percent thanks to its increased brand appeal and high-quality smartphones," Gupta further added.
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