The new pattern of the mobile phone market is emerging, domestic brands are breaking through, and traditional giants are in trouble?
In the quarter of 2024, the domestic mobile phone market can be described as magnificent. Unexpectedly, after a period of downturn, Huawei and Honor regained their market dominance with the hot sales of new flagship products. Traditional giants such as Apple and Xiaomi are facing a severe test, with their market share plummeting. The emergence of this new pattern reflects the breakthrough of domestic brands in innovation and marketing, and also indicates that the competition pattern of the mobile phone industry will undergo profound changes in the future.
Let's take a look at the outstanding performance of Huawei and Honor. According to the data, Huawei's quarterly shipments increased by 69.7%-100% year-on-year, and its market share was about 15.5%-17%, regaining the dominance of the domestic market. This is mainly due to the hot sales of the flagship models of the Huawei Mate 60 series. As Huawei's first 5G flagship mobile phone equipped with the self-developed HarmonyOS operating system, the Mate 60 series has breakthrough innovations in imaging systems and AI interaction, and is favored by consumers.
Honor's performance is also very impressive, with shipments increasing by 11.5%-13.2% year-on-year, and its market share is about 15.8%-17.1%, tied for or followed by Huawei for second place. Honor's good results are mainly due to its innovative layout in the field of AI technology and folding screen mobile phones. For example, the Honor Magic5 Pro has won wide acclaim from consumers with its industry-leading AI intelligent camera system and excellent folding screen experience.
In addition to Huawei and Honor, other domestic brands such as vivo and OPPO have also performed well in the domestic market, with a market share of between 14.6% and 17.4%, and have launched fierce competition with established giants such as Apple and Xiaomi. These brands have made efforts in the mid-to-high-end market and won the favor of young consumers through innovative marketing strategies.
The performance of traditional mobile phone giants in the domestic market has been disappointing. According to the data, Apple fell sharply in the domestic market by 25% in the first quarter, with a market share of between 14.7% and 15.7%, ranking third or fifth. Analysts believe that Apple's weakness in the domestic market is mainly due to its product line being too single and lacking in innovation. Although the iPhone 14 series has improved in terms of photography and battery life, it has not changed much compared with the previous generation as a whole, and it is difficult to arouse consumers' enthusiasm for changing phones. The catch-up of domestic brands in the mid-to-high-end market has also put huge pressure on Apple.
Xiaomi, another veteran mobile phone giant, is in a more difficult situation, being squeezed out of the top five in the domestic market. Xiaomi has always been known for its "high cost performance", but in recent years, its efforts in the field of high-end flagship models have been lackluster, and the pace of innovation is far from that of domestic brands, resulting in a significant decline in its market share in the mid-to-high-end market. Xiaomi is also facing fierce competition from brands such as Honor and Realme in the low-end market, and it is in a worrying situation.
The competitive landscape of the mobile phone industry is expected to undergo profound changes. The rapid development of AI technology will become a new track for major mobile phone manufacturers to compete for layout. Brands with their own AI chips and algorithms will have an advantage in areas such as image shooting and voice interaction. New forms of mobile phones such as folding screens will also become a new blue ocean market for various companies to compete for, which is expected to trigger a new wave of replacement.
In this new round of scientific and technological revolution, domestic brands are expected to further expand their dominant position in the domestic market by virtue of their independent innovation strength and deep understanding of the local market. Traditional giants such as Apple and Samsung, if they cannot adjust their product strategies in time, their share in the domestic market may be further eroded. The competitive landscape of the high-end market may also be reshaped, and a new pattern of dominance by domestic brands may emerge in the future.