Canalys releases 2020 China smartphone market rankings

January 29 news: Canalys, a global technology market analysis and market consulting firm, today released a global smartphone market research report for the fourth quarter of 2020. The report shows that the smartphone market in mainland China shipped 84 million units in the fourth quarter of 2020, a year-on-year decrease of 4%. Full-year shipments in 2020 fell 11% year-on-year to 330 million units. Due to the rapid deterioration of Huawei's performance due to US sanctions, the overall market recovery has been hindered.

The report shows that in the fourth quarter of 2020, Huawei (including Honor) shipped 18.8 million units, and its market share dropped from 41% in the third quarter of 2020 to 22%. OPPO quickly rose to second place, shipping 17.2 million smartphones, a year-on-year increase of 23%. Vivo also achieved a good year-on-year growth of 20%, ranking third with 15.7 million units. Apple also achieved its best shipment performance in China in recent years, with shipments exceeding 15.3 million units in the fourth quarter and a market share of 18%, higher than 15% in the fourth quarter of 2019. Xiaomi ranked fifth with shipments of 12.2 million units, a year-on-year increase of 52%.

Canalys commented, "Huawei's shipments in the fourth quarter shrank by nearly 50% year-on-year. Although the demand for Huawei's products remains huge, Huawei will not be able to meet the demand in the foreseeable future. Other leading manufacturers are eyeing this opportunity. OPPO, vivo and Xiaomi are competing for Huawei's offline channel resources across the country, including channel partners in towns and villages, and have invested huge amounts of money in store expansion and marketing support. These measures brought immediate results, and market share rose rapidly in just a few months. Active expansion is the keyword for OPPO, vivo and Xiaomi's channel construction in 2021."

"Apple's performance in China in 2020 was remarkable, with full-year shipments finally returning to 2018 levels, driven by the iPhone 11 and iPhone 12 models. Shipments in the fourth quarter even reached Apple's highest shipment record in the Chinese market since the release of the iPhone 6S in the fourth quarter of 2015," said Amber Liu, research analyst at Canalys. "Apple's launch of the new iPhone 12 in China coincided with the time when Huawei's supply was cut off. Huawei is Apple's only strong competitor in the high-end field, but its flagship Mate series shipped less than 4 million units in the fourth quarter. However, Apple has not relaxed its marketing of the iPhone 12, including online promotions on major e-commerce platforms across the country, launching more trade-in replacement plans, and the most extensive interest-free installment payment on the market in cooperation with major banks, all of which are conducive to boosting Apple's new phone shipment performance."

"Honor is also a player we should not ignore in China in 2021. Honor has inherited almost all of Huawei's strengths and aims to win Huawei's loyal customers," said Nicole Peng. "As 5G becomes a required feature of any smartphone launched, leading manufacturers like OPPO, vivo and Xiaomi will double down on their flagship and high-end product lines, focusing on the breadth of product lines and the use of high-end parts and components. As Huawei gives up market share, consumers and channels will face more brand choices, and new or small brands will have more opportunities to stand out. In the coming year, the market landscape will usher in a long-awaited wave of turbulence and adjustment."