Huawei’s rapid decline, China’s mobile phone market has undergone drastic changes

Tencent cited data from the research institute BCI that OPPO, vivo, and Xiaomi have surpassed Huawei to take the top three positions in the domestic mobile phone market, while Huawei was far ahead just a quarter ago, which shows how fast Huawei is declining.

China’s mobile phone market has undergone drastic changes

According to data from the research institute BCI, in the last week of 2020, OPPO surpassed Huawei to take the first place in the domestic mobile phone market share. In the first week of this year, vivo and Xiaomi also surpassed Huawei to take the second place in the domestic mobile phone market share. 3rd place.

In contrast, in Q3 2020, Huawei still ranked first in the domestic mobile phone market with 35.1 million shipments, while the shipments of vivo, OPPO, and Xiaomi were 15 million, 14.1 million, and 11 million, respectively. In the past three months, Huawei has fallen to the fourth place or more behind, which shows how tragic the decline of Huawei is.

The reason for the rapid decline in Huawei’s mobile phone shipments lies in the supply of chips. Due to well-known reasons, chip foundries such as TSMC have been unable to produce chips for Huawei since September 15, and chip companies such as Qualcomm and MediaTek cannot. Supply chips for Huawei. Later, although Qualcomm was licensed to supply chips, it was limited to 4G chips. The Chinese market is already dominated by 5G mobile phones, and its support for Huawei is limited.

In desperation, Huawei quickly split and sold the Honor mobile phone in October 2020, relying only on chip inventory to maintain the operation of the mobile phone business, but the market has clearly felt the shortage of Huawei mobile phone supply. Mobile phones are all out of stock, offline retailers say that Huawei mobile phones are available in limited quantities, and some third-party merchants are frantically hyping Huawei mobile phones.

Mobile phone companies are grabbing Huawei’s market

With the rapid decline of Huawei’s mobile phones, Xiaomi, OPPO, and vivo quickly rushed in, with Xiaomi taking the lead. The data of Q3 in 2020 shows that the shipment of Xiaomi mobile phones in the domestic market has increased by more than 10%, while the shipments of other mobile phone brands have declined. Facing a favorable situation, Xiaomi has aggressively expanded offline channels since the fourth quarter of last year. It even advertised that it would open a thousand stores a day.

Xiaomi’s rush into the market will undoubtedly make OPPO and vivo jealous, and the data from the research institute BCI shows that the biggest beneficiaries of Q4 in 2020 seem to be OPPO and vivo, which may be related to OV’s huge offline retail stores. After all, nearly 80% of the mobile phone sales in the Chinese market are done in the offline market, and the profit share given to retailers by OV and Xiaomi is also much higher than that of Xiaomi. This should be the reason why OV and OV have quickly overtaken Huawei and maintained their lead over Xiaomi. reason.

Another beneficiary is Apple. This time, the front media digitimes pointed out that the shipment of the iPhone 12 in the Chinese market in Q4 2020 will reach 18 million, an increase of at least 70% compared with the shipment in Q4 2019. Much of the mobile phone market has been taken away by Apple’s iPhone.

Seeing that Chinese mobile phone companies and Apple are taking advantage of Huawei’s decline to seize the market, Samsung, the world’s mobile phone leader, can’t sit still. Recently, it has been reported that Samsung plans to provide huge subsidies for retail channels in China, providing retailers with a subsidy of 500,000 yuan for each store opened. In contrast, a Chinese mobile phone company previously required retailers to pay 100,000 yuan for store decoration. It can be seen how generous the subsidies given by Samsung this time are.

China is the world’s largest mobile phone market, and mobile phones sold in the Chinese market account for about 30% of the global market. Samsung has lost its share of the global mobile phone market due to the loss of the Chinese market, while Huawei has relied on the Chinese market from the third quarter of 2019. Taking advantage (Huawei occupies more than 40% of the domestic mobile phone market, and mobile phones sold in the domestic market account for nearly 70% of its mobile phone shipments) once surpassed Samsung to win the first place in the global mobile phone market share.

This is enough to prove that the Chinese mobile phone market determines the pattern of the global mobile phone market. Now that Huawei has given up a large amount of market share, it has naturally triggered competition between Chinese mobile phone companies and Apple and Samsung. Who will take the lead in the Chinese mobile phone market?

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