A new report from Canalys highlights a change in how Chinese consumers are buying smartphones. Instead of sticking to one favorite brand, many are now spreading their purchases across several brands, with no single company standing out as the top choice.
For the third quarter of this year, Vivo took the lead in China’s smartphone market, securing a 19% market share. This represents a jump from 16% in the same period last year, with Vivo’s sales growing by 25%. Right behind Vivo is a tight cluster of brands, including Huawei, Honor, Xiaomi, and Apple. Each of these companies holds similar shares, with Huawei at 16%, Honor and Xiaomi each at 15%, and Apple at 14%. The sales gap between these brands is minimal, differing by only 0.8 million units.
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Among this group, Huawei and Xiaomi saw positive growth, with Huawei’s sales up 24% and Xiaomi’s up 13%. This suggests that Chinese consumers still have a strong demand for these brands, possibly due to their product variety and innovation. However, Honor and Apple saw declines in their sales. Honor’s sales dropped by 13%, while Apple experienced a 6% decrease. Apple’s decline could point to a shift among Chinese buyers who are gravitating toward local brands that offer value and features at competitive prices.
Outside of these top brands, other smartphone companies combined to capture 21% of the market, a decrease from 24% last year. This decline suggests that consumers in China are less interested in brands outside the leading five. The data reflects a trend toward consolidation, where most buyers are focused on a small number of trusted brands rather than exploring lesser-known options.
This shift reveals a new trend in the Chinese market. Brand loyalty is decreasing, and consumers are now making more informed, selective choices. Competition among the top five brands is also intensifying. Each company must adjust its strategy to retain and attract customers. Chinese buyers are becoming more discerning and open to various brands. This will likely lead to stronger competition, driving companies to innovate and better meet changing customer preferences.
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