[Global Network Technology reporter Wang Nan] Today, market research firm IDC announced the first quarter of 2017 China's smart phone market report. China's smart phone market shipments increased by 0.8% year-on-year. Huawei, OPPO, vivo, and other domestic manufacturers exceeded Apple's, and ranked top three in sales.
According to the report, shipments of Apple's iPhone decreased by 26.7% year-on-year, and Xiaomi’s share also declined by 7.5%; OPPO shipments increased by approximately 19.5% year-on-year; vivo shipments achieved a slight increase of 7.6% year-on-year. It is worth mentioning that Huawei's shipments increased by approximately 25.5% year-on-year, making it the highest growth in sales volume in Chinese smartphones.
Overall, China's smartphone shipments in 2017 tend to be flat in the first half of 2017, and IDC predicts that it will be lower than the 8.6% growth rate in 2016. This “slow†situation may increase in the second half of the year.
As for the reasons for the smoothness of the Chinese smart phone market, IDC believes that due to the cyclical changes in the market, it was first affected by the seasonality of smartphones. The Spring Festival holiday caused temporary suspension of mobile phone market channels, resulting in a general slump in the first quarter. Secondly, manufacturers’ inventory is relatively high. In the first quarter of this year, the main factor of capacity reduction is obvious, so the new aircraft is sold less, and this situation may be improved in the spring and summer.
From the report we also saw the exhaustion of Apple's iPhone sales.
In addition, the financial report released by Apple recently showed that the sales volume of Apple's iPhone smartphones in the second quarter was 50.76 million, which was lower than the 5.119 million in the same period of last year and failed to reach the analyst's average expected 52 million.
Although sales did not meet expectations, revenues increased year-on-year. According to statistics, Apple’s revenue for the second quarter was $52.9 billion, up from $50.5 billion in the same period of last year. Revenue from the iPhone in the second quarter was up 1.2% year-on-year. Despite overall revenue growth in the global market, Apple’s revenue from Greater China fell 14.1% year-on-year to $10.73 billion in the quarter. Apple believes that competition from low-priced smartphones has caused its sales to suffer And the impact of the devaluation of the Chinese renminbi.
In contrast, sales of domestic manufacturers such as Oppo, Vivo, and Huawei are rising sharply. IDC believes that the main reason for this is two things:
First, Chinese mobile phone manufacturers are refreshing the perception of domestic users. Before talking about domestic mobile phones and cheap low-end linked to the situation in the future or a breakthrough. The share of first-line domestic mobile phone brands such as Huawei in the high-end market has increased rapidly year-on-year, which is particularly evident from this year's report. In the future, China's mobile phone manufacturers must focus on their efforts. Only a stable high-end camp can gain advantages in future market competition.
Second, expanding offline experience stores is the future trend. In the past two years, the Xiaomi mobile phone, which is mainly used to attack the Internet, has begun to enter the offline experience store. It can be seen that the Internet sales model is not enough to become the main channel for the company's sales. Developing a relatively stable offline channel is the key to a win-win situation.
Apple also said that Apple's sales in Greater China declined, on the one hand, because domestic mobile phones intercepted the user's demand for replacement in the high-end market. On the other hand, it also stems from the current decline in online dividends, the transfer of smart phone sales channels from online to offline, and offline channels, there are more than 200,000 terminals under the OPPO line. The data shows that the number of retail stores under the Vio line has reached 250,000 and the number of after-sales service centers has reached more than 430. Lei Jun’s earlier “small target†is to lay out 1,000 “millet homes†in China in the next three years. Huawei also set a goal of opening 15,000 new Huawei retail stores globally. Apple has long way to go.
"As users focus more on the brand experience, the function of the mobile experience store should be more focused on how to narrow the distance between the brand and the user, providing users with a variety of experience services." IDC analysis.
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