Vertical Divider

Xiaomi, Oppo, Realme and Honor Slash 2021 Shipment Goals 
 
Having already lowered their targets earlier in May, according to industry sources. China’s smartphone market saw Realme’s Q1 2021 sales surge 82% sequentially and 451% YoY, making it the seventh biggest smartphone brand in the country, according to Counterpoint Research’s Market Monitor Service. Despite the China smartphone market growing only 5% in Q1 2021, realme continued to take market share from rivals, suggesting opportunity still exists in the market. OPPO, Xiaomi and vivo were the other prominent brands that made double-digit sequentially sales gains at the cost of Huawei and HONOR.

OPPO and vivo have engaged in a heated battle for the top spot in China’s smartphone market. The rise coincided with the fall of Huawei and newly spun-off HONOR, which struggled due to component shortages following US sanctions. As Huawei focused more on the premium segment, realme, OPPO, Xiaomi and vivo filled in the sizeable gap in the mid segment with timely product launches that ushered in a new generation of 5G capable devices. These brands also expanded their distribution presence with bifurcated efforts in online (driven by Xiaomi and realme) and offline (driven by OPPO and vivo) channels.

Commenting on the shake-up, Senior Analyst Yang Wang said, “realme grew at the fastest clip among major brands. Its distinctive yet effective marketing strategy appealed to budget-sensitive Gen Z audiences, who tend to look for premium features that support a social media, photography and gaming driven digital lifestyle. At the same time, the brand’s product portfolio kept pace with bigger established incumbents, in terms of product launches and key premium specs. At extremely competitive prices, the realme brand stood out among peers.”