China, a market that defines global trends
China is a big essential market for the smartphone industry. And yes, with nearly 1.4 billion people who consume around 100
million smartphones, which represents one third of global consumption (333
million smartphones were sold worldwide in the second quarter of 2019).
Moreover, it is in China where are assembled many appliances of the majority of
the marks, in spite of the tendency of the manufacturers towards Vietnam
lately.
Evolution of worldwide smartphone sales from 2012 to 2019
Global
smartphone sales in millions of units from 2012 to 2019
Source : IDC
Source : IDC
The Korean
Samsung has maintained an almost stable position since 2013, even though it
represents an international brand, it fails to stand out. Samsung has tried to
outsmart these competitors by first advertising a foldable smartphone and plans
to produce more than one million units in 2019. This model, for which we are
unaware of the interest of consumers, remains a symbol strong, even if it will
not determine the number one place of world manufacturers.
Apple, for
its part is down on the smartphone market for six consecutive quarters now. The
trend continues with a further drop in global shipments of 6.6% in the first
three months of 2019, far behind Huawei (36.3%), Vivo (18.3%), Oppo (18.2%),
and Xiaomi ( 11.7%).
Huawei and Honor, the Chinese group that has risen to second place in the market far ahead
of Apple with its strength in the Chinese market. In addition, Vivo and Oppo
brands, which belong to the Chinese group BBK Electronics, such as OnePlus and
Realme, are particularly strong in their local market, with the two of them,
nearly 38% of the market, ahead of Huawei and Honor.
Who will wear the race in the years to come?
Galaxy S9,
the best-selling model in the five major European markets in September 2019,
and Note 9 is also in the Top 10, indicate that the world's number one, the
Korean Samsung, even if it goes on complicated quarters, will still hold its
global position in the future.
China's
recession, which accounts for about 30 percent of global demand, had a worst
year in 2018 with a plunge in volumes of 10 percent. However, this situation
benefits domestic manufacturers. Huawei, OPPO, vivo and Xiaomi share 78% of the
market, compared to 66% previously, which explains the strong growth of these
companies in 2018. To become a sustainable builder, it will have to demonstrate
more than stability and succeed in a move upmarket. Xiaomi's business model,
for example, is essentially based on entry-level and low margins, which could
slow the group's evolution into the future.
It is
important to note that, the current trend in the market does not rhyme with a
decline in sales generated by the sale of smartphones. In the example of Apple,
whose revenues are growing faster than sales, which can be explained by the
growth in device prices, the smartphone market continues to grow in value due
to an increase in the average selling price. .
"When we
look at the money value situation, the smartphone market continues to grow and
will continue to grow over the next few years as consumers rely more and more
on these devices for the most part. IT needs, "says IDC.
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