Canalys: Huawei Dominates China’s Smartphone Market

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According to the latest report of Canalys, Huawei topped the smartphone market in China with a 66% annual growth in Q3.

Canalys
Logo from Huawei

Huawei opened a huge gap between itself and other vendors. It has 25% more share than this quarter’s runner-up, Vivo,” Nicole Peng, Canalys VP of mobility, said.

Table from Canalys
Table from Canalys

According to Peng, Huawei was in a “strong position” to strengthen its dominance in the 5G network. She added that this may pressure other competing brands such as OPPO, vivo, and Xiaomi.

vivo, OPPO, and Xiaomi’s shipments are in freefall, despite new products constantly being pushed to market,” according to Louis Liu, the research analyst of Shanghai-based Canalys. “Smaller vendors hope to leverage 5G to rapidly boost market share given that China major operators have aggressively pushed 5G pre-registration with plentiful discounts and free 5G data allowance, which has resulted in over 10 million subscribers registering an interest to move to 5G.

Liu added that Apple was “more prepared than its previous year” to face challenges in China. With the rapid boost of iPhone 11 launch, Apple maintained its spot as 5th place with 40% of Q3 shipments.

Its iPhone 11 models focused on camera improvements, which proved desirable to Chinese consumers. More importantly, a lower launch price of iPhone 11 and a more flexible channel margin structure for local distribution on the new devices, were critical market stimuli for Apple. But it faces a looming challenge, as Chinese vendors and operators are set to drive heavy marketing and promotions around 5G in the next two quarters. This could steal its thunder,” Liu concluded.

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