Lenovo and Xiaomi Drop Out of the Top 5 Selling OEMs
Lenovo and Xiaomi Drop Out of the Top 5 Selling OEMs
2016-04-29
let's talk about the tectonic shifts
that's happening in the world of
smartphone manufacturers market research
firm IDC has published its report for
the first quarter of 2016 and the
results are fascinating it reveals that
a total of 335 million smartphones have
been shipped globally so far this year
up ever so slightly from 334 million
handsets shipped last year the market is
clearly showing signs of saturation and
both Apple and Samsung have seen
year-over-year decline in sales however
the biggest change in the market is that
Lenovo and Xiaomi two of last year's
largest and fastest-growing
manufacturers have dropped out of the
top 5 largest global vendors the
findings revealed that Lenovo and Xiaomi
have been replaced in fourth and fifth
positions by Chinese manufacturers Oppo
and VEVO during the first quarter of
2016
Wow you see IDC research suggests that
there are two major factors that may be
behind the swing and one is that the
Chinese economy is currently suffering
people are just aren't buying as many
flagship smartphones to date however the
second reason may be that Chinese
customers are still aspiring for
higher-end products but the very top of
the line products remain out of reach
instead customers are looking for brands
in the middle of the market which offer
unique high-end features without the
high end price while Lenovo and Xiaomi
have seen their average selling prices
fall below $200 rival companies such as
Huawei and Oppo and vivo our pricing
many of their products in the sub $250
category Ryan wreath of IDC research
claims the following and I quote our
assumption is that once first-time
buyers get a taste of a life with a
smartphone once it's time to buy a new
device they look upstream a bit now keep
in mind we're talking about going from a
hundred and fifty dollars to two hundred
fifty dollars on an unsubsidized device
so in comparison to mature markets this
is still a very low cost but for the
majority of China this is pushing the
means now this change at the top of the
market may come as a big surprise to
many of you Xiaomi has consistently been
one of the fast
growing manufacturers over the past
couple years while lenovo's acquisition
of Motorola has greatly increased the
company's global presence that being
said both brands either have or will
have new smartphones on the way this
year so it could look a little different
come q1 2017 so is this the beginning of
the end for the likes of Xiaomi and
Lenovo let me know in the comments below
I'll be reading them now you long-term
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