Huawei, OPPO, Vivo cut smartphone-orders by 10% amid falling demand
Major Chinese smartphone makers Huawei, OPPO, and Vivo, are cutting their handset orders by 10% for Q4 2017 owing to the declining demand for smartphones worldwide. These three companies are taking 10% fewer device shipments from suppliers than the initial orders as they are sitting on huge unsold inventory. The only Chinese manufacturer that seems unaffected by the slumping demand is Xiaomi. Here's more!
Chinese players' orders to suppliers for Q1 2018
Amid the dropping smartphone demand globally, Huawei, OPPO, and Vivo will also begin the next year on a "slow note" as their orders to suppliers for Q1 2018 would also be over 10% lower than initial projections, according to Taiwanese tech website DigiTimes. This would also affect the performance of the most upstream supply chain players in the same period, added the report.
Xiaomi not impacted by the declining demand
Xiaomi, however, continues to enjoy good demand and sales in India and China as well. The Chinese company has not reduced any smartphone shipments, said DigiTimes. It is performing well in both online and offline segments, too. It has become the largest smartphone maker in India in 2017; it was not even close to the top spot at the beginning of the year.
Xiaomi experienced stable sales: Report
DigiTimes said, "Xiaomi Technology appears to have continued enjoying stable sales for its smartphones and is one of a few smartphone vendors that are able to stay out of the influence of the unfavorable market trends thanks to its strong...offline and online operations."
Xioami's performance in the Indian smartphone space
In India, Xiaomi registered a market share of 23.5% in the third quarter of 2017. According to IDC India, the Chinese company is tied with South Korean electronics giant Samsung, which also had a 23.5% market share, at the top spot in India's market. Xiaomi has exceeded all expectations this year; it is also expected to emerge as the biggest player next year, too.
Huawei faces competition from Xiaomi in India
On the other hand, Huawei is the third-largest smartphone seller globally. It has been focusing on promoting its products in the US by collaborating with the local telecom carriers for launching flagship devices. Coming to its performance in the Indian market, Huawei is facing fierce competition especially from Xiaomi, OPPO, and Vivo. It is expected to expand its presence in India through various campaigns.
OPPO outraces local manufacturer Micromax in India
OPPO's sales in offline channels have reportedly weakened lately. So, the company is now focusing on online sales and has partnered with e-commerce players like Amazon and Flipkart in a bid to push sales. Unlike Huawei, however, OPPO in India continues to enjoy good sales overall. It is much ahead of the homegrown device maker Micromax in the race.
