Recent reports are showing some changes in the Chinese smartphone market as its current leader Huawei may be slipping into a decline.
TrendForce has lowered its projections for Huawei’s production to 199 million units, though this figure still represents an annual growth rate of about 10 percent.
In addition, the projected sales of its competitors have increased. OPPO is poised to sell 78 million units annually in 2016, totalling a percentile growth of 59 percent. Vivi is also heading for large gains as its projected sales increase to 66 million, resulting in a growth rate of 40 percent year over year.
On the other end of the spectrum however, the HTC 10 did not perform as the Taiwanese company expected it to and is projected to reach just one million units sold in 2016.
The HTC Vive is still in a promising position, justifying the company’s moves to gradually structure HTC around VR. Overall however, HTC is poised to suffer an annual decline of almost 30 percent.
Other declines include Lenovo which is projected to experience a decline of approximately 16 percent, and Xiaomi, which will experience a decline of 13.3 percent.
In total however, the five major Chinese smartphone manufacturers (Huawei, OPPO, Vivo, Lenovo and Xiaomi) total a growth rate of almost 11 percent year over year.
“The Chinese market is ever-changing. Short product lifecycle and fierce competition lead to constant shifts in the production volume ranking for domestic brands,” said Avril Wu, TrendForce smartphone analyst in a statement sent to MobileSyrup.
She went on to say that, “Lenovo and Xiaomi were Chinese smartphone leaders in 2014, and then Huawei became the No. 1 domestic brand 2015 by registering an annual production volume of over 100 million units. This year, however, OPPO and Vivo have taken the spotlight in the home market.”
Chinese smartphone manufacturers have long been a staple in global mobile markets. Huawei rocketed to the head of the pack in 2015, though now seems to be experiencing a plateau while competitors like OPPO, Vivo, and Asus enjoy periods of rapid growth.
Furthermore, while HTC smartphones continue to flounder, the company’s focus on VR might be the leg the it stands on as it moves into the future.
Related reading: Huawei claims photo snapped with P9, actually shot from $3,500 camera
[source]TrendForce[/source]
MobileSyrup may earn a commission from purchases made via our links, which helps fund the journalism we provide free on our website. These links do not influence our editorial content. Support us here.
