eMarketer as of late analyzed the results of new Kantar Worldpanel ComTech estimates suggesting a decrease in market share for foreign cell phone producers like Apple. Furthermore, with the release of entire year 2016 estimates on cell phone shipments in China by International Data Corporation (IDC), there’s additional confirmation of the further ascent of local makers Oppo and Vivo. The two firms seem to have found a triumphant mix of cost and components, permitting them to prevail over more settled contenders like Apple and Xiaomi.
As per IDC, iPhone producer Apple’s market share in China tumbled to 9.6% in 2016, down from 13.6% a year prior. Apple delivered 13.5 million less phones in 2016 than it did the year before that. In the meantime, China-based cell phone producer Oppo saw its market share more than twofold, moving from 8.2% in 2015 to 16.8% a year ago. Oppo delivered 78.4 million cell phones in China in 2016, more than any other maker. China-based gadget organization Vivo did good also: Its market share climbed by more than 6 percentage marks in 2016, and it delivered 69.2 million cell phones.
Even before the revelation of 2016 results from IDC, different sources have followed the fast development of these two homegrown makers. As indicated by Q3 2016 data from Counterpoint Technology Market Research, the shipment partake in China for both Oppo and Vivo expanded by more than 6 percentage marks over Q3 2015.
What may clarify the expanding notoriety of Oppo and Vivo among cell phone purchasers in China? The two organizations have settled on a gadget system that joins functionality with an appealing “midrange” value point. Truth be told, cell phone sales in this midrange appear to outpace different categories. A GfK evaluation of China’s cell phone sales development by gadget value point in the initial half of 2016 found that the quickest developing category was gadgets priced between RMB 2,500 and RMB 3,000 ($376 and $451).
Oppo and Vivo appear to have found a sweet spot between less expensive cell phones and the top of the line products offered by Apple, helping the producers position themselves for further development among China’s developing working class.