Is there a big gap between Chinese mobile phone companies and Apple and Samsung?
Issue Time:2018-07-09
Apple’s market share has stalled, Samsung’s market share has gradually declined, and the market share of Chinese mobile phone companies is leaping and is actively entering the high-end mobile phone market. However, according to data from the market point, the high-end mobile phone market is still Apple. And Samsung's world, China's mobile phone brands mainly rely on cost-effective mobile phones to win market share.

In recent years, Samsung and Apple are facing the pressure of Chinese mobile phones.

After defeating the former global mobile phone leader Nokia in 2012, Samsung has been holding the position of the global mobile phone market for more than six years, but it has gradually declined in terms of market share. In 2013, its share in the global mobile phone market exceeded 30%. This is the second mobile phone company in the global mobile phone industry, with a share of more than 30% in the global mobile phone market. However, according to IDC data, Samsung accounts for the global smart phone market in 2017. The share is 21.1%.

Apple has taken the second place in the global smartphone market for many years, but its iPhone shipments suffered the first annual decline in 2016, and only increased by 0.2% in 2017. Of course, although iPhone shipments have stagnated, 2017 four Its net profit reached a new high in the quarter, mainly due to its most expensive iPhoneX in history.

In contrast, China's mobile phone companies are in the forefront. In 2017, seven of the world's top ten mobile phone brands are from China, and Chinese mobile phone brands Huawei, OPPO and Xiaomi rank among the top five in the world.

Among them, Huawei’s smart phone shipments reached 153 million units last year. Its goal of catching up with Apple is likely to be achieved this quarter. It is expected that this year’s smartphone shipments will reach 200 million units. It’s just a step away from catching up with Apple.

Chinese mobile phone companies still have a big gap with Apple and Samsung

China's mobile phone companies are currently only challenging Apple and Samsung in terms of shipments, and there is still a huge gap between Apple and Samsung in terms of innovation and profit, especially in the high-end mobile phone market.

According to the TOP10 of the global hot-selling mobile phone list released by counterpoint in May, the sales rankings ranked first, second, third, fifth and sixth respectively are iPhone8, Galaxy S9+, iPhoneX, iPhone8 plus, Galaxy S9. This is the high-end mobile phone of Apple and Samsung.

In contrast, China's mobile phone brands are listed in the middle and low-end mobile phones, respectively ranked fourth, seventh, eighth, ninth, tenth red rice 5A, P20 lite (seems to be Nova33e), X21, Red rice note5, A83, in addition to X21 pricing is 2,598 yuan, the other four products are priced within 2,000 yuan, and even the lowest price of red rice 5A is only 699 yuan.

This highlights that the reason why Chinese mobile phone brands have won more sales in the global market is mainly relying on lower-middle-end products with lower profits, with cost performance as the main competitive advantage. This is also confirmed in terms of profit. In the third quarter of 2017, Apple and Samsung accounted for 60% and 25.9% of the global smartphone market respectively, while Huawei, OPPO and vivo, which have the highest domestic profits, together accounted for the global smartphone market. The profit share is only 12%. In the fourth quarter of 2017, Apple captured 86% of the global smartphone market with the iPhoneX.

After China's mobile phone brands continue to capture more shares in the global smartphone market, the key to their future is whether the high-end mobile phone market can achieve the tiger's mouth from Apple and Samsung, so that it can go up to the next level, but for now it seems difficult. Great, Samsung has the competitive advantage of the entire industry chain, Apple is still the most innovative mobile phone company in the world, and domestic mobile phone brands are not easy to catch up.

Article source: Non-network

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