TrendForce: Changes in Global Market Share and Growth Rate of Chinese Smartphone Brands from 2013 to 2019

According to the latest research results of TrendForce, a global market research organization, Chinese brand manufacturers including IDH (Independent Design House) have grown rapidly in the past few years, benefiting from the strong domestic demand market, as well as the factors such as active investment in smartphone R&D and brand value creation in recent years. Starting from last year, they broke through the smartphone market structure led by international brands such as Korean and American brands in the past, and captured more than half of the global market share. This year, facing the intensification of market elimination, Chinese smartphone brands have benefited from the expansion of overseas markets, firmly occupying more than half of the global market, and it is estimated that the global market share will expand to 54%.

Looking at the global demand for smartphones, although there is new demand from emerging countries, people are generally passive in their willingness to replace their phones, and the replacement cycle is prolonged, resulting in a slowdown in the growth of the global smartphone market. TrendForce predicts that the annual growth rate of global smartphones this year will be the same as last year or only grow slightly, and in order to maintain market share, competition among brands will be more intense than before.

TrendForce points out that the reasons for the changes in the market share of Chinese smartphone brands include actively developing new markets, streamlining sales channels, and deploying a diversified model of online and offline sales, which is certainly an indispensable part of expanding market share. However, the reason why Chinese brands can stand out from the fierce competition and continue to expand their market share is mainly due to successful pricing strategies, such as emphasizing high cost-effectiveness and deploying a full range of products in various price ranges, enabling them to win the market in newly developed regions.

However, the strategy of highly emphasizing cost-effectiveness may continue to squeeze the profit margins of Chinese brand manufacturers. The resulting financial pressure will accelerate the elimination of brands, and the development of Chinese brands in the future will be more concentrated and convergent. Huawei, Xiaomi, OPPO, and vivo are the most outstanding Chinese brands. The four major brands not only account for nearly 70% of the market share of all Chinese brands, but also affect the expansion of Chinese brands in the global market share map.