While many smartphone makers have beeen moaning about the size of the Chinese market shinking, it appears that China's smartphone shipments only declined 5 per cent on year in the first quarter of 2016.
About 104.9 million smartphones were shipped to the China market in the first quarter of 2016, down from 109.8 million units during the same period in 2015. Linda Sui, director at Strategy Analytics said:
"China smartphone growth is slowing due to market saturation, inventory build and economic headwinds," said"Despite the slowdown, China remains by far the world's largest smartphone market, accounting for nearly 1-in-3 of all 334.6 million smartphones shipped globally this quarter."
Huawei shipped 16.6 million smartphones for the number one spot in China during the first quarter of 2016, with the shipments growing 48% from 11.2 million units a year earlier.
However Huawei has been growing rapidly in China due to extensive distribution channels and popular Android models like the Mate 8, but it is starting to look like Huawei's growth in the high end segment is now starting to slow, as several major rivals like Oppo and Vivo are fighting back.
Neil Mawston, executive director at Strategy Analytics.
"Oppo is a superstar this quarter, overtaking Xiaomi to become the second largest smartphone vendor in China. Oppo shipped 13.2 million smartphones and captured a 13 per cent share in China in the first quarter of 2016. Shipments were up 67 per cent from the 7.9 million units shipped in the first quarter of 2015. Oppo's R-and A-series models have been well received in second-tier cities and rural areas of China," Mawston noted. "Oppo's micro-innovations, such as flash charging technology, have also helped it gain more attention in urban areas such as Shanghai."
Xiaomi saw its smartphone shipments in China fall 9 per cent on year to 12.8 million units in the first quarter of 2016. Xiaomi slipped to third position with a 12 per cent share of the market down from 13 per cent a year ago. In fact "Xiaomi is facing tough competition in mid-tier segments from Huawei and Samsung.
Vivo held fourth position with a 12 per cent share of China's smartphone market in the first quarter of 2016, up from 7 per cent a year earlier, Strategy Analytics disclosed.
The Fruity cargo cult Apple slipped to fifth position with an 11 per cent share of the market.
"Mixed demand for the iPhone 6s and stronger competition from Oppo and others were among the key factors for its lackluster performance," Sui indicated.