It took a while, but the inevitable happened: Huawei lost so much valuable leadership of the Chinese smartphone market. The figures were revealed by Counterpoint Research and show that the Oppo finally won the crown of China’s largest mobile phone company.
Of course, this leadership of Oppo is something very recent, since it only happened in January this year. Currently, the manufacturer has a 21% market share and its monthly growth reached an incredible 33%, while the annual growth is around 26%.
The launch of affordable 5G phones has been Oppo’s biggest strategy for its growth in China. The data show that about 64% of cell phones sold in the country already have support for the new network.
I o second place is occupied by Huawei, which is technically tied with vivo with a 20% stake. In other words, the ex-leader will most likely fall to third place within the next few months. The graph below shows that Oppo has been evolving rapidly.
A queda by Huawei has also benefited Xiaomi and even Apple, as both have a 16% market share in China. According to Counterpoint analysts, Huawei began to lose the 5G race with the tightening of U.S. sanctions.
Xiaomi is taking full advantage of the decline in Huawei’s online share, while Oppo and Vivo have captured the offline segment. At its peak, Huawei had more than 10,000 retail stores and experience across China. This number has been decreasing since the fourth quarter of 2020. Huawei also dismembered Honor and this further reduces Huawei’s market share in China.
As a Honor becoming a fully independent brand, Huawei should focus only on premium market with the P and Mate lines. This, despite being highly profitable, should drop the sales volume of the manufacturer in the medium term and further expand the participation of competitors.