In the last quarter, eight of China’s top ten smart phone brands showed negative growth, with shipments falling 21%.
Smartphone shipments in the world’s largest market continued to shrink this year, and smartphone shipments in the first quarter of 2018 fell by 21% from the 114 million units in the same period last year to 91 million, and the largest quarterly decline since the end of 2013. According to the report of Canalys last week.
Huawei, Oppo, Vivo, and Xiaomi adhered to the top spot in smartphone shipments. The combined share in the first quarter of 2018 was 73%, compared with 58% of the four major brands in the same period last year.
Other brands, including Apple, accounted for 27% of all shipments in the past three months, down from 42% in the first quarter of 2017, indicating that the Chinese market has further consolidated and become a playground for major brands.
Of the top 10 smartphone manufacturers in China, only two smartphone brands, Huawei and Xiaomi, have grown year-on-year in the past quarter. Their shipments during the three-month period have increased by 2% and 37% respectively.
All other eight companies reported a decline in shipments in the previous quarter, of which Jinli, Meizu, and Samsung were the biggest losers in the market, during which shipments fell by more than 50%.
According to the report, shipments of Oppo and Vivo, China's second-and third-largest smartphone brands, fell by around 10% in the quarter.
"The level of competition forces each supplier to imitate other companies' product portfolios and listing strategies," said Canaries research analyst Mo Chi at the press conference. "However, in a country like China, the cost of marketing and channel management is enormous, and only a supplier of a certain size can handle it.
"While Huawei, OPPO, Vivo, and Xiaomi must face the shrinking Chinese market, they can be comforted by the fact that it will continue to consolidate, and their size will help them to last longer than other small businesses."
Other industry data also showed similar results.
According to a report released by the Chinese government agency China Institute of Information and Communications Technology in early April, China’s smartphone shipments reached approximately 82 million in the first three months of 2018, a decrease of 27% from the same period last year, according to Xinhua news.
Xinhua News Agency said that smartphone shipments began to decline a year ago, with the largest year-on-year decline in shipments in December 2017, with shipments falling by 33.2%.
Another report released by industry agent Counterpoint stated that China's smartphone shipments slowed down in the first quarter of 2018, falling 8% year-on-year and continuing to drop by 21%.
It added that the five brands, Huawei, Oppo, Vivo, Apple, and Xiaomi, accounted for 82% of the market, compared with 72% in the first quarter of 2017.