China's smartphone market has saturated, as evidenced by its languid performance in the first quarter, with sales dropping 3.5% sequentially, or 2.5% year-on-year, to 97 million units, according to MIC (Market Intelligence & Consulting Institute), a Taipei-based ICT research institute. In the second quarter of 2015, Huawei had the best performance and garnered 15% market share, with sales soaring 69% year-on-year to US$9.09 billion in the first half.
Chinese Smartphone Market Share by Branded Vendor, 1Q 2013 – 2Q 2015
Source: MIC, October 2015
"Huawei's extraordinary performance is attributed to its distinct product strategy, through which Huawei-branded models are to target the high-end sector and Honor-branded models the mass sector with an aim to increase market presence," says Edward Lin, senior industry analyst with MIC. "Over the past four years, the company has succeeded in switching from a value-line to higher-end or luxury brand. For instance, the Huawei Mate S, its most expensive flagship model up to now, was debuted at IFA 2015."
While many put Huawei on a par with Xiaomi in the mobile-phone sector, Huawei has taken aim at to compete with international rivals Samsung and Apple, in the hope of being the largest Android smartphone brand in China and ultimately overtaking Apple in 2018. To achieve the goal, Huawei is set to boost its competitiveness by improving its sales channels and adjusting its pricing strategy.
To see more about this report, please visit: Chinese Smartphone Market Development, 3Q 2015
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Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. http://mic.iii.org.tw/english