Vivo Beats Xiaomi To Become 5th Biggest Smartphone Brand In Q1

While global smartphone sales saw a decline in Q1, 2019, Chinese smartphone player Vivo raised its stake and beat Xiaomi to become the world’s 5th largest smartphone vendor in that quarter. Vivo sold 27.4 million smartphones in Q1, 2019 as compared to Xiaomi’s 27.2 million in the same quarter.

Vivo’s market share in the global smartphone sales was 7.3% in Q1, 2019, up from 6.1% in Q1, 2018. The top five smartphone vendors in the quarter, in terms of unit sales, are Samsung, Huawei, Apple, Oppo and Vivo.

Smartphone sales worldwide have declined 2.7% in Q1, 2019 owning to multiple factors including lower demand for premium phones, says a report from Gartner. The report says the global smartphone sales reach 373 million in Q1, 2019 as against 383.5 million during the same period a year ago.

“Demand for premium smartphones remained lower than for basic smartphones, which affected brands such as Samsung and Apple that have significant stakes in high-end smartphones,” said Anshul Gupta, senior research director at Gartner. “In addition, demand for utility smartphones declined as the rate of upgrading from feature phones to smartphones has slowed, given that 4G feature phones give users great advantages at a lower cost.”

Slowing innovation in flagship smartphones and rising prices continued to extend replacement cycles. The two countries that sell the most smartphones, namely the U.S. and China, saw sales decline by 15.8% and 3.2%, respectively, in the first quarter of 2019.

Also Read : Vivo Grows 119% When Indian Smartphone Industry Grew 4%

In the first quarter of 2019, Samsung retained the top spot in worldwide smartphone sales achieving 19.2% market share  Huawei achieved the highest year-over-year growth among the world’s top five, growing 44.5% and smartphone sales totaling 58.4 million units.

Despite its absence from the U.S., Gartner says, Huawei maintained its ranking as the No. 2 smartphone vendor worldwide and continued to reduce the gap with Samsung.

Sales of Huawei smartphones grew in all regions. “Huawei did particularly well in two of its biggest regions, Europe and Greater China, where its smartphone sales grew by 69% and 33%, respectively,” said Mr. Gupta. Huawei’s continued dominance in Greater China, where it commanded a 29.5% market share, helped it secure the No. 2 global smartphone vendor ranking in the first quarter of 2019.

“Unavailability of Google apps and services on Huawei smartphones, if implemented, will upset Huawei’s international smartphone business which is almost half of its worldwide phone business. Not the least it brings apprehension among buyers, limiting Huawei’s growth in the near term,” said Mr. Gupta.

Gartner-smartphone-data-q1

Despite a decline in its smartphone sales of 8.8% in the first quarter of 2019, Samsung remained the No. 1 smartphone vendor worldwide. “Samsung launched its flagship Galaxy S10 smartphone portfolio, which received a good response. However, its impact was limited as Samsung only started shipping the S10 at the end of the first quarter,” said Mr. Gupta. “Samsung also strengthened its midtier and entry-tier smartphone ranges with a refreshed A series and J series and the newly introduced M series, but aggressive competition from Chinese manufacturers limited their impact.”

Sales of Apple iPhones totaled 44.6 million units in the first quarter of 2019, a decline of 17.6% year over year. “The price cut for iPhones across markets helped drive up demand but wasn’t enough to restore growth in the first quarter,” said Mr. Gupta. “Apple is facing longer replacement cycles as users struggle to see enough value benefits to justify replacing existing iPhones.”

Vivo beat Xiaomi to claim the No. 5 spot in the first quarter of 2019. Vivo sold 27.4 million smartphones during the quarter. Xiaomi sold 27.2 million.

The latest features, such as in-display fingerprint scanner, slider camera, fast charging and almost bezel-less display, helped Vivo achieve double-digit smartphone sales growth in the first quarter of 2019. “However, the company could do much better by expanding its range of its entry-tier smartphones and selling them in emerging Asia/Pacific markets,” said Mr. Gupta.

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