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Tag: Oppo

  • Oppo R9 becomes the best-selling device in China

    Oppo R9 becomes the best-selling device in China

    The latest smartphone OS sales data from Kantar Worldpanel ComTech shows a solid 5.2% percentage point US market share increase for iOS during the third quarter of 2016 to 34.2%. Both iOS and Android made gains across most of the EU5 countries. However, Android posted a 3.3 percentage point decline in the US from 66.7 to 63.4%, while iOS share fell in Germany from 17.5% to 15% and in Urban China from 18.7% to 14.2%. 

    Europe’s big five markets include Great Britain, Germany, France, Italy, and Spain.

    In Urban China, Android accounted for 85.3% of smartphone sales in the third quarter of 2016, its second highest share ever in this market. 

    “Oppo continues to see significant growth, gaining 8.2 percentage points over the past year to become the 4th largest manufacturer in Urban China with 11.2% of smartphone sales. The Oppo R9 overtook the iPhone 6s as the best-selling device in the third quarter,” reported Tamsin Timpson, Strategic Insight Director at Kantar Worldpanel ComTech Asia. “iOS posted yet another year-on-year decline to 14.2% of smartphone sales in the third quarter of 2016. Importantly, this marks a period-on-period return to growth in sales, up from 13.5% in the three months ending in August. With supply constrained on the iPhone 7, and particularly the 7 Plus, this positive turn for Apple is a good sign, suggesting that as supply grows to meet demand, Apple will be able to turn the tide in Urban China.” 

    “In the US, the new iPhone 7 and 7 Plus models made an immediate impact, becoming the best-selling smartphones in the month of September at 17.1%,” said Lauren Guenveur, Consumer Insight Director for Kantar Worldpanel ComTech. “Strong sales of the iPhone 7 and the lower-priced iPhone 6s, the second best-selling device in the US in September, contributed to an overall growth of iOS to 34.2% in the third quarter of 2016.

    “Despite some sales from the beleaguered Samsung Galaxy Note 7, still technically available through the month of September, Samsung posted a year-on-year decline from 36.9% to 33.8% of US smartphone sales in the third quarter,” Guenveur continued. “The holiday sales season may prove to be more challenging than normal for Samsung, who competes head-to-head with Apple during this crucial time of year. Fallout from the Note 7 recall could have an unintended impact on continuing sales of other, similarly-named Samsung devices (chiefly the Galaxy S7 and S7 edge), as consumers may not always understand the difference between the model names. However, deep holiday discounts, as we saw with the Galaxy S6 last year, may counteract any expected negative impact, as the driving reason for choice among US consumers remains finding a good deal on the price of the phone.”

    “In Great Britain, the iPhone 7 and 7 Plus were top-sellers during the month of September, accounting for 15.1% of sales,” said Dominic Sunnebo, Business Unit Director for Kantar Worldpanel ComTech Europe. “In the third quarter of 2016, iOS accounted for 40.6% of smartphone sales, a 2.4 percentage point increase from the same period a year ago. It’s interesting to note the continued success of the iPhone SE in Britain, accounting for 8.5% of sales in the quarter vs. a share of just 3.5% in the US.” 

    “Britain is the only market where Samsung made year-on-year gains, totaling 30.4% of smartphone sales,” Sunnebo added. “In Italy, Huawei replaced Samsung as the reigning smartphone leader to become the top brand sold at 27.3%, a 15.2 percentage point gain vs. the third quarter 2015. Samsung accounted for 24.7% of smartphone sales in Italy, a decline from 40.6%. In Spain, Huawei and Samsung are now neck-and-neck, with Samsung edging out Huawei 24.2% vs. 23.3%.”

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  • China smartphone demand grows 17pc

    China smartphone demand grows 17pc

    China smartphone demand grew 17 per cent last month, according to technology research company Counterpoint’s monthly Market Pulse.

    It was the best-ever June in terms of sell-through for smartphones, despite the overall market having modest growth for the second quarter ending June 31.

    “The competitive environment in the world’s leading smartphone market has taken an interesting turn as domestic brands have significantly ramped up their positions in the smartphone market,” says research director James Yan.

    Oppo became the top-selling brand in China for the first time ever in June, surpassing Huawei, Apple and Xiaomi with a 23 per cent market share and sales volumes leapfrogging 337 per cent.

    Also owned by the BBK group, Vivo also had a strong performance with the launch of a new model. Together, the sister brands captured a third of the Chinese smartphone market, up from a combined 13 per cent in the same month last year.
    Meanwhile, Apple’s market share slipped to 2014 levels.

    Counterpoint research director Neil Shah says Oppo adopted a simple but effective strategy – going after the offline market, which still contributes more than 70 per cent of total sales in China.

    “Aggressive marketing, promotions and sponsorships, greater offline retail penetration beyond tier-two and tier-three cities, better retail margins, dealer support and, above all, innovative smartphone designs have helped Oppo drive its sales in the past 18 months.”

    The brand had also focussed on design and key features such as camera, battery technology and materials.

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  • Troubles may mount for Indian smartphone vendors and you can blame China

    Troubles may mount for Indian smartphone vendors and you can blame China

    It’s going to be a lot tougher to buy smartphones in India around the festive season beginning October, a time when Indians buy the maximum, fancy gadgets included.

    The reason is really very simple, plain economics-a demand-supply mismatch. There is, as of now a glaring shortage of mobile components in China, the country which sells the maximum number of smartphones in India, through companies like Xiaomi, LeEco, Huawei, Oppo, etc.

    Many Chinese manufacturing units in China have shut shops due to new technology, which requires more investment and hiring labour at higher rates.

    The display panel shortage comes as some of the panel makers, especially for the LCD displays which are largely used in the low-end smartphones and make up for majority of the smartphones sold in India, have shut shop recently, while others have not had significant increase in capacity.

    This is further aggravated by the fact that consumers are moving towards larger screens, 5″+ and especially at 5.5″, so there are fewer glass panels are coming out from the same capacity.

    Even though top Chinese handset and component makers mulled over investing around $3 billion in India, the country is still dependent on the Dragon nation.

    Some of the key components such as screen displays, 3G SOCs and flash memory will be short in supply, hitting the production plans of many vendors in the Indian market.

    “This is likely to impact local Indian vendors, the small ones as well as the heavy weights, more than it will impact the global vendors such as Samsung or Apple, who have a more secure supply chain, and Chinese vendors such as OPPO, vivo, Lenovo, Xiaomi and Huawei, who are able to secure better deals due to the large volumes they can commit,” said Kiranjeet Kaur, Research Manager Mobile Phones IDC Asia/Pacific.

    “The local country vendors have a disadvantage in this case. This shortage could also possibly lead to longer time to market and increased costs, and some of the costs may eventually get passed on to the consumers,” she added.

    It is noteworthy that Chinese companies such as Techno, Gionee, Coolpad, Holitech, Wingtech, Camera King, Galaxy Core, Poxiao, Vivo and Sprocomm, which took part in ‘China-India Mobile Phone & Component Manufacturing Summit’, explored avenues to tap the existing and emerging opportunities.

    “Going by the encouraging response of Chinese companies and definitive joint collaboration talks between the Indian and Chinese mobile and handset manufacturers, Chinese investment of $2-$3 billion (roughly Rs. 13,360 crores – Rs. 20,040 crores) over the next two years looks like a real possibility along with employment for one-two lakh people” Pankaj Mohindroo, national president, Indian Cellular Association (ICA), had said.

    However, IDC expects the Indian smartphone market to still pick up in Q2 of this year, with further gains coming in Q3.

    Jaipal Singh, Market Analyst Mobile Phones IDC India, said, “China-based vendors have extended their retail presence in the larger part of India and getting the shelf space along with the Indian vendors. Even as some of the eTailers are focusing more on profitability, which could mean lesser discounts this season, we believe the China-based vendors with presence in retail and push from the eTailers will drive the market this year.”

    The China-based vendors had 24% share in the Indian smartphone market in 2016 Q1, up from 12% a year ago. Almost two-thirds of their sales takes place through the online channels.

  • Oppo, Vivo snap at Apple’s heels in China

    Oppo, Vivo snap at Apple’s heels in China

    Beyond China few may have heard of Oppo or Vivo, but these local handset vendors are rising up the rankings in the world’s largest smartphone market, using local marketing savvy and strong retail networks in lower-tier cities.

    Industry experts say these cities — there are more than 600 of them and some are bigger than many European capitals — are the next smartphone battlefield as China’s major cities are saturated.

    International brands such as Apple and Samsung Electronics have mostly not yet reached this part of the market — which accounts for more than 56% of China’s overall consumption, according to Beijing All China Marketing Research.

    In an economy growing at its slowest pace in a quarter of a century, buyers in these smaller cities – with populations of up to 3 million – tend towards cheaper phones, which is good news for Guangzhou-based Oppo and Vivo, as well as Meizu Technology Co, an affiliate of Alibaba Group Holding Ltd.

    “Oppo and Vivo have already overtaken Samsung and ZTE Corp in China, and are working to chase down the big three of Huawei, Xiaomi and Apple in 2016,” said Strategy Analytics analyst Neil Mawston.

    Selfies, gimmicks
    To be sure, these lower-priced newcomers lack the firepower of the premium brands, and operate on razor-thin margins or at losses. They need mass volume sales to keep going, the industry experts said.

    Oppo sold 10.8 million smartphones, giving it a 9% market share and a top-5 ranking, in the fourth quarter of last year, according to Strategy Analytics — even as the overall China market slipped 4%.

    Oppo’s R7 smartphone, priced at 1,999 yuan ($304), touts itself as a “selfie expert”, with a bigger screen than the iPhone 6s and competitive camera resolution.

    Vivo ranked fourth with 10% market share, below Apple’s 13%.

    The growth among these younger vendors comes as Apple, Xiaomi and others struggle to maintain momentum in a market swamped with smartphones and fading economic growth.

    Analysts say the newcomers run eye-catching marketing gimmicks, including sponsorship with local TV shows, and have extensive retail networks in lower-tier cities.

    “There’s only so much the international firms can do when it comes to localized marketing in China,” said Nicole Peng at Canalys. “For foreign companies like Samsung, their marketing strategies don’t really cater to the Chinese consumer.”

    Sixth-ranked Samsung declined to comment.

    Apple last week forecast a first revenue drop in 13 years and posted the slowest-ever increase in iPhone shipments as the Chinese market showed signs of weakening.

    Challenges ahead
    China has nine of the world’s top-12 smartphone brands, with nearly a quarter of the market share, according to CounterPoint Research, but turning that into volume sales beyond China will be a challenge.

    Overseas, Chinese brands lack strong distribution networks and can run into intellectual property issues. Oppo is already in several Asian and Middle East markets, while Vivo is in Malaysia and India.

    And at home, Chinese device buyers are notoriously fickle, switching between brands in a cut-throat market. Regular price wars have seen ZTE and Lenovo Group frequently swap places in the sales rankings.

    “The lines between ‘high-end’ and ‘low-end’ devices is blurring, which leaves price as the sole differentiator for most mass market buyers,” said Sameer Singh, an analyst who blogs at Tech-Thoughts.net.

    “Brand image tends to be a lagging indicator of customer experience, i.e. as the latter improves, so does word-of-mouth and consequently brand image. I think that’s what we’re seeing with Chinese brands today.”

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  • Apple China bracing for fall

    Apple China bracing for fall

    Even as it announces record revenues and net profit, Apple says it has sold fewer iPhones in the first quarter and is bracing for a fall in sales in its critical Chinese market.

    “It’s becoming more apparent that there are some signs of economic softness,” says CFO Luca Maestri. “We are starting to see something that we have not seen before.”

    He admits the tech giant is working in a “very difficult macroeconomic environment” and projects a further slide in iPhone sales for the second quarter, reports the International Business Times. Apple’s projected revenues indicate the company’s sales are about to fall for the first time in 13 years.

    Apple’s sales stumble was masked by the record corporate quarterly profit. Conlumino analyst Neil Saunders takes a close look at the latest Apple report in our international section.

    Apple sold 74.8 million iPhones in the first quarter, ending December 26, which is the first full quarter of sales of the iPhone 6S and 6S Plus. The 0.4 per cent growth in shipments was the lowest since the product’s launch in 2007.

    Maestri says that although Apple China revenue rose by 14 per cent in the quarter, the company is starting to see a shift in the economy, particularly in Hong Kong.

    Apple had record figures in the first quarter for both net profit ($18.36 billion, up from $18.02 billion) and revenue (up 1.7 per cent to $75.87 billion). Greater China accounted for 24.2 per cent of the total revenue, more than all of Europe combined.

    An indication of Apple’s popularity in China can perhaps be gauged by the dwindling number of fake Apple stores in the southern city of Shenzhen, some of which have been taken over by unauthorised outlets for local phone brands.

    In a street of gadget stores, copycat Apple outlets were not uncommon, complete with the latest iPhone models and accessories and uniformed staff. Only four months there were more than 30, but about a third of these have gone, reports Reuters. Instead of iPhones, some of these shops are now selling Huawei, Meizu, Oppo and Xiaomi phones.

    In fact, the iPhone has become a “street cellphone” – a Chinese term that means a widely available and popular product that lacks novelty value.

    “Using an iPhone is hardly something you can show off to people now,” a Shenzhen retailer told Reuters.

    In the US, iPhones are still popular, and 60 per cent of people who had an iPhone before the launch of the iPhone 6 have yet to upgrade, says the company.

    Meanwhile, the Indian market stands out as a rare bright spot for Apple with a growing demand for iPhones, reports The Indian Express.

    Sales of the company’s flagship smartphone climbed 76 per cent in India from the year-ago quarter, according to Luca Maestri.

    Apple CEO Tim Cook has suggested more growth lies ahead with median age in India being 27 years.

    “I see the demographics there also being incredibly great for a consumer brand,” he says. “We have been putting increasingly more energy in India.”

    India cannot immediately offset Apple’s woes in China, says analyst Neil Shah of Counterpoint Technology Market Research. Apple averaged about 450,000 smartphone shipments a quarter in India last year, compared with more than 15 million a quarter in China.

    Also, nearly 70 per cent of smartphones sell for less than $150, leaving  a slim market for Apple’s high-end phones. Its smartphone market share stands at less than 2 per cent, says Shah.

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  • Oppo, Vivo snap at Apple’s heels in China mobile market

    Oppo, Vivo snap at Apple’s heels in China mobile market

    Beyond China few may have heard of Oppo or Vivo, but these local handset vendors are rising up the rankings in the world’s largest smartphone market, using local marketing savvy and strong retail networks in lower-tier cities.

    Industry experts say these cities – there are more than 600 of them and some are bigger than many European capitals – are the next smartphone battlefield as China’s major cities are saturated.

    International brands such as Apple and Samsung Electronics have mostly not yet reached this part of the market – which accounts for more than 56 percent of China’s overall consumption, according to Beijing All China Marketing Research.

    In an economy growing at its slowest pace in a quarter of a century, buyers in these smaller cities – with populations of up to 3 million – tend towards cheaper phones, which is good news for Guangzhou-based Oppo and Vivo, as well as Meizu Technology, an affiliate of Alibaba Group Holding Ltd .

    “Oppo and Vivo have already overtaken Samsung and ZTE Corp in China, and are working to chase down the big three of Huawei, Xiaomi and Apple in 2016,” said Strategy Analytics analyst Neil Mawston.


    Oppo sold 10.8 million smartphones, giving it a 9 percent market share and a top-5 ranking, in the fourth quarter of last year, according to Strategy Analytics – even as the overall China market slipped 4 percent (Oppo) To be sure, these lower-priced newcomers lack the firepower of the premium brands, and operate on razor-thin margins or at losses. They need mass volume sales to keep going, the industry experts said.

    Oppo sold 10.8 million smartphones, giving it a 9 percent market share and a top-5 ranking, in the fourth quarter of last year, according to Strategy Analytics – even as the overall China market slipped 4 percent.

    Oppo’s R7 smartphone, priced at 1,999 yuan ($304), touts itself as a “selfie expert”, with a bigger screen than the iPhone 6S and competitive camera resolution.

    Vivo ranked fourth with 10 percent market share, below Apple’s 13 percent.

    The growth among these younger vendors comes as Apple, Xiaomi and others struggle to maintain momentum in a market swamped with smartphones and fading economic growth.

    Analysts say the newcomers run eye-catching marketing gimmicks, including sponsorship with local TV shows, and have extensive retail networks in lower-tier cities.

    “There’s only so much the international firms can do when it comes to localized marketing in China,” said Nicole Peng at Canalys. “For foreign companies like Samsung, their marketing strategies don’t really cater to the Chinese consumer.”

    Sixth-ranked Samsung declined to comment.

    Apple last week forecast a first revenue drop in 13 years and posted the slowest-ever increase in iPhone shipments as the Chinese market showed signs of weakening.

    A mobile phone made by Chinese telecom equipment maker Huawei is displayed in a store in Beijing. (AFP)

    CHALLENGES AHEAD

    China has nine of the world’s top-12 smartphone brands, with nearly a quarter of the market share, according to CounterPoint Research, but turning that into volume sales beyond China will be a challenge.

    Overseas, Chinese brands lack strong distribution networks and can run into intellectual property issues. Oppo is already in several Asian and Middle East markets, while Vivo is in Malaysia and India.

    And at home, Chinese device buyers are notoriously fickle, switching between brands in a cut-throat market. Regular price wars have seen ZTE and Lenovo Group frequently swap places in the sales rankings.

    “The lines between ‘high-end’ and ‘low-end’ devices is blurring, which leaves price as the sole differentiator for most mass market buyers,” said Sameer Singh, an analyst who blogs at Tech-Thoughts.net.

    “Brand image tends to be a lagging indicator of customer experience, i.e. as the latter improves, so does word-of-mouth and consequently brand image. I think that’s what we’re seeing with Chinese brands today.”