Recently, the statistical agencies have released statistics on shipments of smartphones in China and the world. Among them, Huawei’s performance is quite eye-catching. This eye-catching performance has already triggered the domino effect of the Chinese mobile phone industry.
A few days ago, the statistical agency released the statistics report on the shipments of the smartphone market in China and the world. Among them, Huawei’s performance was quite eye-catching. This eye-catching performance has already triggered the domino effect of the Chinese mobile phone industry.
One of the effects: Xiaomi is the most injured in the Chinese market, and the price/performance ratio is replaced by OV
According to market research firm Canalys, the third quarter market share report for China and the global smartphone market shows that Huawei’s smartphone shipments in China’s smartphone market declined by 3%, a 66% year-on-year increase in the global market. Compared with the year-on-year growth of only 1%, Huawei’s year-on-year growth rate has also reached 29%, far exceeding the top 5 other mobile phone manufacturers, so that the outside world did not see Huawei’s negative impact on the US “physical list”, more like a blessing in disguise. Beneficiary. Of course, this benefit comes more than unexpected, and the sales in the Chinese market are soaring.
In China, where smartphones are dominated by the stock market, Huawei’s skyrocketing naturally means a sharp decline in business. Sure enough, in the same period of China’s smart phone market, in sharp contrast to Huawei’s skyrocketing, other major Chinese mobile phone manufacturers OPPO, vivo and Xiaomi suffered a sharp decline of 20%, 23% and 33% respectively. In terms of absolute shipments, Huawei has a total of 41.5 million units close to OPPO, 17.5 million in vivo and 8.8 million in Xiaomi.
In fact, for mobile phone manufacturers, the reduction in shipments is on the one hand, and more importantly, this decline in market share is quite helpless and scary at the expense of production value (decrease and price reduction). .
The industry still remembers that in the first half of this year, OV and Xiaomi have made strategic adjustments to their brands, among which OPPO will launch R in the Indian market last year.Ealme introduced the Chinese market and released the Reno sub-brand; vivo released the sub-brand IQOO; Xiaomi split the millet and launched the Redmi brand. Their core purpose is only one: the main price/performance ratio.
Who wants to be a smartphone player, they also expect the uncertainty of Huawei mobile phone development in overseas markets this year. It is bound to overweight the Chinese market, facing both the brand itself and the marketing resources. Huawei, the only way to ensure that this impact is reduced is only cost-effective. But the fact is, even so, in the third quarter of this year, instead of maintaining their own shipments, they have been declining, especially in Xiaomi.
As we all know, for Xiaomi, whether it is the past or the brand split, the price/performance ratio has always been the core of its mobile phone business growth. However, with the aforementioned OV’s cost-effectiveness in the Chinese market, Xiaomi’s tried and tested price/performance ratio has been replaced by OV.
Take the example of the August 20th Android mobile phone price/performance list released by Ann Bunny. In the price range of 500 to 1499 yuan, among the top 10 mobile phones, Xiaomi and Redmi totaled 3 on the list, and OV totaled 3 on the list, including vivoZ3 surpassed all 3 mobile phones including Xiaomi and Redmi, this year from India. The RealmeX Youth Edition released after the introduction of the Chinese market surpassed the two mobile phones including Xiaomi and Redmi. It should be noted that in all 10 cost-effective mobile phone rankings, RedmiNote7 Pro is ranked bottom.
According to the “Southern Metropolis Daily” reported in October this year, the “Mobile Phone Brand Word of Mouth List” jointly released by Nandu Identification Evaluation Laboratory and Skieer Vision Information shows that in terms of cost-effective word of mouth, vivo ranked first, beyond this year’s millet demolition Redmi, OPPO, which is the most cost-effective, has surpassed Xiaomi.
Of course, with the implementation of OV’s main price/performance strategy this year, its “high price and low allocation” model, which previously maintained revenue and profit growth, was also terminated. Despite this, OV still failed to effectively prevent its sales decline in the Chinese market, and Xiaomi fell into the same dilemma.
Effect 2: OV shopping in India to maintain growth, millet bottleneck period comes early
History is always repeated in the ICT industry. Similar to the return of Xiaomi in India through the Indian mobile phone market in 2017, the Indian market has become a blessing for OV. althoughHowever, the OV in China’s mobile phone market has fallen sharply, but the mobile phone market in India has been booming.
In the third quarter of the past, according to statistics from Counterpoint Research, the market share of vivo in India’s smartphones jumped from 10% in the same period last year to 17%; OPPO has no change in market share compared with a year ago. , still maintained at 8%, but shipments increased by 12%.
It is worth mentioning that its sub-brand Realme has performed well, and its market share has soared from 3% rockets in the same period last year to 16% this year, which makes OPPO+Realme’s market share in India’s smartphones reach 24%. Not only surpassed the second-ranked Samsung, but also only 2% difference from the number one millet.
The industry knows that for the Xiaomi mobile phone business, the Indian market has already surpassed the Chinese market to some extent. Especially in the Chinese market, the strategic adjustment including organizational structure and brand splitting has not achieved results, and even accelerated. At that time, it will become the core to support the development of Xiaomi’s mobile phone business. Once there is a mistake, the consequences will be disastrous.
The house is leaking and it is raining all night. In view of OV’s high-pressure competition in China’s mobile phone market, in order to ensure the stability of sales, the Indian mobile phone market will also become one of its core markets after China, and the threshold for cost-driven growth in the Indian mobile phone market is not high. For OV, which is both opaque and unreliable in revenue and profit, it is easy to combat Xiaomi with a cost-effective strategy.
If the millet in the Indian mobile phone market is about to face the bottleneck of the natural property growth in the market, the OV’s onslaught this quarter indicates that the growth bottleneck of Xiaomi’s mobile phone market in India will come early. By then, China’s mobile phone market will stop falling, the Indian mobile phone market will continue to grow stagnation, and even do not rule out the decline, Xiaomi mobile phone business will face a huge crisis.
So, for OV, is it a blessing or a curse in the Indian smartphone market?
As mentioned above, the Indian smartphone market is still sexual now and in the future.The price ratio, or the market that drives growth at a low price.
In the case of the fastest-growing Realme, according to Counterpoint Research, Realme C2, Realme 3i and Realme 5 are the mainstays of their third-quarter sales soaring, and these models are almost all thousands of machines, including online. The best-selling Realme 5 3GB+32GB version is priced at only 9999 Indian rupees (about 985 yuan). As for the realme C2 series, the price range is 5999 Indian rupees (about 580 yuan) to 7999 Indian rupees (about 770 yuan); realme 3i series price range is 7999 Indian rupees (about 800 yuan) to INR 9999 (about RMB 1,000).
The price/performance ratio is said to have surpassed the red rice. In view of the fact that the Indian market is also the core of Xiaomi’s mobile phone, Xiaomi is bound to stick to this market at any cost. OV and Xiaomi will continue to intensify the battle for cost-effectiveness in revenue and profit. By then, if OV is still unable to stop falling in the Chinese market. If possible, it may repeat the development path of Xiaomi.
Effect of the third: Huawei’s Chinese market continues to increase OV, Xiaomi China market has a strategic opportunity to turn over
The so-called sorrow and sorrow are reliant on the blessings. This analogy is more appropriate for Huawei mobile phones.
I don’t know if the industry still remembers Lenovo’s remarks that Lenovo’s Lenovo is already on the edge of the cliff in 2009. At that time, Lenovo was once in crisis because of the global financial crisis and the strategic mistakes of Lenovo’s rapid expansion. To this end, Liu Chuanzhi proposed a strategy of returning to the Chinese market, and once again regarded the Chinese market as the base camp of Lenovo, which eventually led Lenovo to survive the crisis.
While today’s Huawei is different from Lenovo’s original difficulties, the result is that the uncertainty of overseas markets has led to a slowdown in growth, and seeks to fill the gaps in the Chinese market. Huawei did it, and only in four quarters (high-speed growth is nearly two quarters), it suddenly increased its smartphone market share in China from 24.9% to 42.4%. The year-on-year growth rate was as high as 66%.
More importantly, the shipment of Huawei mobile phones in the Chinese market is close to the sum of OV and Xiaomi. In the third quarter of 2019, in conjunction with Canalys statistics, Huawei shipped 66.8 million Huawei smartphones in the global smartphone market. Huawei’s mobile phone shipments in the Chinese market accounted for 62% of its global shipments (actually in the last In the quarter, Huawei’s mobile phone China market shipments even accounted for 63.5% of its global shipments. Just a year ago, Huawei’s mobile phone shipments in the Chinese market accounted for only 48% of its global shipments.
Before, industry analysts pointed out in a report that Huawei’s market share in the Chinese market will be 2019.35%-40% increase to 45%-50% in 2020. More insiders believe that according to this trend, it is not impossible for Huawei’s mobile phone market share in the Chinese market to reach 70%-80%.
We will not discuss whether the industry insiders have a certain exaggeration. Let’s take a look at the evaluation of Huawei’s mobile phone in the Chinese market by Nicole Peng, vice president of Canalis: Huawei has opened a huge gap with other manufacturers. gap. Its share is 25% higher than the runner-up in the quarter. Huawei’s dominant position gives it tremendous power to negotiate with the supply chain and increases its market share among channel partners.
He also said that Huawei has a close relationship with operators in terms of 5G network deployment. Compared with its local counterparts, Huawei has strong control over key components such as 5G chipsets for local networks when the 5G network is launched. Therefore, Huawei has the ability to further consolidate its dominant position, which has put tremendous pressure on OPPO, vivo and Xiaomi, and they will find it difficult to make any breakthrough.
Nicole Peng’s evaluation highlights Huawei’s mobile phone, channel, technology and other leading advantages in the future due to the skyrocketing sales in China. However, what we need to add is that, compared with these leading advantages, Nicole Peng ignores the unique advantage that Huawei is equally important in the Chinese market. That is because this year the United States listed Huawei as a physical list, but in the domestic market, Unique positive amplification effect on its brand.
In this regard, Counterpoint Research also mentioned Huawei’s performance in the Chinese market in the third quarter. The so-called “time, place, and people”, want to come to Huawei will not give up this opportunity for the blessings of the blessings, and continue to overweight the Chinese market in the future.
There is a problem. If Huawei continues to overweight the Chinese mobile phone market, will OV and Xiaomi still have a chance?
Effect of the fourth: OV, Xiaomi should adopt a strategic adjustment in the future, and why is Huawei’s peace of mind and conscience?
Before talking about whether OV and Xiaomi still have opportunities, we may wish to introduce an episode. As early as the second quarter of 2019, Huawei’s unique situation in the Chinese mobile phone market has already taken shape. Interestingly, on the day of the report, Huawei also held a performance conference. At the press conference, the reporter of the South China Morning Post asked: Huawei’s mobile phone is a big one, will the conscience not hurt?
In this regard, the industry has different interpretations. We believe that the South China Morning Post reporter’s deep question is that Huawei’s monopoly in the Chinese mobile phone market is quite similar to what Xiaomi Leijun said at the beginning: Take his own path and let others have nowhere to go! Huawei’s dominance is at the expense of other Chinese mobile phone manufacturers. This is true for the Chinese smartphone industry.Is the competition and the market really good? This is reflected in the third quarter of this year. What is the truth?
Looking at the global smartphone market, according to Counterpoint Research, in the third quarter, Huawei ranked second with 66.8 million units and 17.6% market share, compared to OPPO. , vivo ranked fourth and sixth with 32.7 million (8.6%) and 29.5 million (7.8%) respectively.
It is worth mentioning that the OPPO sub-brand Realme ranked seventh with 10.2 million units (2.7%) due to the skyrocketing sales in the Indian and Indonesian markets in the same quarter. Don’t underestimate this ranking. As a brand that has been established for more than a year, its sales and ranking in the global smartphone market has surpassed the established Lenovo.
What’s more interesting is that in evaluating the performance of the vendors in the quarter, Counterpoint Research has put the OPPO, vivo, OnePlus, Realme and other brands together in the name of the BBK group to evaluate them. Counterpoint Research analyst Shobhit Srivastava pointed out that the BBK Group has OPPO, vivo, OnePlus (One Plus), Realme and other brands, the top ten occupy three seats (share 19.1%), the total proportion can exceed 20%. The three brands’ shipments in the third quarter were around 72.4 million units, surpassing Apple (44.8 million units) and Huawei (66.8 million units), which is very close to Samsung (78.40 million units). If this trend can be sustained, The BBK family, which is rooted in the land and actively expands its international market, is expected to achieve a higher leap in the future.
Counterpoint Research’s evaluation is really meaningful and fascinating. According to this evaluation standard, the shipment of Huawei (including glory) smartphones, which is growing at such a high speed in the Chinese mobile phone market, is placed in the global market. It is associated with OPPO, vivo, OnePlus, Realme, which belongs to BBK. Compared with the sum of the brands, it is clear that the South China Morning Post reporter’s feeling of Huawei’s conscience for the Chinese mobile phone market will not hurt. On the contrary, we are seeing another strong opponent that Huawei may face in the future. Still need moreAdding effort is the only way. What is the reason?
As we all know, due to the special nature of Huawei (due to the dual influence of market and non-market competition factors), the uncertainty of its mobile phone business in overseas markets is far greater than that of BBK.
From the global market, OV and Realme are now firmly occupying the world’s third largest smartphone market in India; Southeast Asia is also the world of OV and Realme; in the world’s second largest smartphone market, it is also the highest value of smartphones. The market, OnePlus (one plus) has entered smoothly last year, and it is said that the momentum is improving. According to a recent report from the Dutch technology media LetsGoDigital, OPPO Reno Ace is currently registered in the United States and is expected to enter the US market before the end of this year.
In contrast, apart from the obvious gap between India and Southeast Asia, Huawei is even more disadvantageous in that it has no possibility of entering the US smartphone market in the short term.
As for Huawei’s most important overseas market in Europe, according to Letsgodigital, OPPO has launched a new Z series in Europe and has applied for 13 product names. They are 2Z, 3Z, 4Z, 5Z, 6Z, 7Z, 8Z, 9Z, 10Z, 20Z, 30Z, 40Z and 50Z. These applications are listed in category 9 with instructions for mobile phones; smartphones; smartphone software; headsets; battery chargers.
At this point, I believe the industry should understand why Huawei still needs to continue to overweight the Chinese mobile phone market! After all, with the fierce market competition, if the BBK system can’t effectively curb the sharp decline in the Chinese market, it is very likely that it will carry out strategic brand integration in the future to enhance the overall competitive efficiency of the synergy and compete with Huawei. Huawei is now only in danger, and it is the best policy to obtain the largest market share in the most certain Chinese market.
If OBK’s OPPO and vivo, including all of its sub-brands, will eventually be transformed through aggressive strategic brand integration.If you have a chance to even threaten Huawei, what about Xiaomi?
In fact, as early as this year when Xiaomi split the Xiaomi and Redmi brands, we have written an analysis of the risk of this strategy. In short, it is how the millet and Redmi brands pass the most valuable price after the split. Reflecting the distinct separation from each other.
But the truth is, since the split, the price of the Redmi brand, which is positioned at the most cost-effective price, is rising (attempts to cover the middle and low end markets), and the price covers 699 to 2699 yuan. The result is quickly the most cost-effective. The price range of 500 to 1499 yuan was lost to OV. In contrast, the price of Xiaomi brand did not reflect the initial research and development of advanced technology, and based on the positioning of the high-end market, such as the latest The Xiaomi 9 Pro 5G mobile phone is 3699 yuan, which is the lowest price of the 5G mobile phone that has been released in China. The main intention of price/performance ratio is still obvious.
The market is the most objective standard for verifying whether a strategy is correct or not. In the third quarter, Xiaomi’s mobile phone shipments in China’s market fell sharply by 33%, and the Indian market suffered OV and Realme’s intensification led to a narrowing of the gap (including a decline in its market share from 27% to 26%). It must be Xiaomi’s mobile phone. There is a problem with the strategy.
However, compared with OV and Huawei, Xiaomi’s unique IoT (high revenue) and Internet business (high profit margin) growth still provide redundant space for Xiaomi’s future mobile phone strategy adjustment. For example, through the better division between Xiaomi and Redmi (at least Redmi should take advantage of the price-performance ratio from OV); give up the pure pursuit of ASP growth and focus on the Chinese and Indian markets, especially the Indian market share.
Summary
Before you must be inside. For Huawei, this year’s mobile phone market in China has greatly increased its lethality against rivals, including the sharp decline in rival shipments, changes in product strategies, and the resulting conflicts between friends and merchants. The effect will make Huawei’s future inevitably continue to increase, especially when there are still variables in the “outside”, “Anne” will become the top priority. It is not a problem of conscience and pain, it is a pain in the end.
Unity is power. In the face of Huawei’s almost mad sneak attack on the Chinese mobile phone market, if OV can’t effectively curb its sharp decline in this market in the future, the brothers of OV, Realme and OnePlus who belong to the BBK department will merge into one. The domestic market avoids mutual conflicts and minimizes the gap with Huawei. Overseas markets, especially the Indian market, re-enacted Huawei’s dominance in the domestic market, weighing Xiaomi; sweeping Southeast Asia, pulling down Samsung, stabilizing these three markets, the development of the US and European markets will be backed up, and at the same time Shipments will put tremendous pressure on Huawei.
The ground is lost to the ground. Want to sellStill want profit, this is a problem. However, for the positioning of Internet companies, the hardware profit rate of less than 5% of Xiaomi chooses the former as a veritable name. What’s more, there are IoT and Internet business guarantees for revenue and profit sources, so that the mobile phone business can return to the real cost performance mode, increase sales, increase users, and Xiaomi still hopes to compete with Huawei and OV.