The rise of domestic mobile phones, foreign brands are losing and retreating, and the pattern is changing?
The smartphone market has always been a major part of the tech industry. In recent years, with the popularization of 5G technology and the introduction of innovative designs such as folding screens, the smartphone market has changed dramatically, and the competition has become increasingly fierce. In this competition, domestic mobile phone brands have gradually risen by virtue of their cost-effective advantages and localized operations, surpassing traditional foreign brands, triggering profound changes in the industry pattern.
Domestic mobile phone brands such as Xiaomi, OPPO, and vivo have performed well in the past few years, and shipments have continued to climb. Taking Xiaomi as an example, as the leader in the domestic smartphone market, its shipments will exceed the 200 million mark in 2023, an increase of 15% from the previous year. With its cost-effective low-end models, Xiaomi has sold well in emerging markets such as India and Southeast Asia, and its market share has been rising.
The two major brands, OPPO and vivo, also maintained strong growth momentum in the domestic and foreign markets. OPPO has won recognition in the high-end market with its FindX series flagship models, while vivo has relied on the iQOO brand to open up its popularity among young users. The two companies' shipments to overseas emerging markets increased by 20% and 18% year-on-year, respectively, reflecting the emergence of domestic mobile phone brands around the world.
In addition to these three companies, Huawei and Honor brands, which were once regarded as "national mobile phones", have also made a comeback. After a period of downturn, Huawei and Honor began to refocus on the high-end flagship market, launching a number of new models equipped with the HarmonyOS system. Thanks to the powerful self-developed chip and advanced imaging system, the Huawei Mate 50 series and the Honor Magic5 series have been well received after their release, and sales have been rising.
In stark contrast to the rise of domestic brands, traditional foreign mobile phone brands are losing ground in the global market. Take Apple and Samsung, for example, although the two tech giants still dominate the high-end market, their share in the low-to-mid-end market is declining year by year.
Apple acknowledged in its 2023 earnings call that iPhone sales growth has slowed due to fierce competition in the Chinese market. Although Apple maintains its leading position in the global premium market with the strong performance of the iPhone 15 series, in China, the world's largest smartphone market, Apple's market share has been rapidly eroded by domestic brands.
Compared to Apple, Samsung is in a much more difficult position. Since the "batterygate" incident in 2016, Samsung's influence in the Chinese market has not fully recovered. In recent years, Samsung's shipments and market share in the Chinese market have declined, and even fell out of the top five for a time. In order to regain its strength, Samsung had to shift its focus to the low-to-mid-end market, launching cheap Galaxy A series models, but it was still difficult to compete with the crazy onslaught of domestic brands.
In addition to Apple and Samsung, the situation is even worse for other foreign mobile phone brands such as Sony and LG. Sony and LG have announced their withdrawal from the Chinese smartphone market and will instead focus on other business areas. The fall of these brands has undoubtedly cleared many obstacles for the rise of domestic mobile phone brands.
In the face of the crazy catch-up of domestic mobile phone brands, traditional foreign mobile phone manufacturers are also actively seeking breakthroughs. Apple revealed in its latest first-quarter earnings report that it will increase its investment in emerging markets and launch more low-end models in order to reverse the decline in these markets.
Success in the low-to-mid market can be difficult. Domestic mobile phone brands have an absolute advantage in this field, and with localized operation strategies and a deep understanding of local user needs, they are able to provide ultra-cost-effective products. For a foreign brand like Apple, it is difficult to fully adapt to the environment of emerging markets in a short period of time.
Apple is taking a different path, setting its sights on emerging technologies such as 5G and folding screens. Apple has been working on a foldable iPhone, which is rumored to be available as soon as 2025. Once launched, the foldable iPhone is bound to lead a new wave in phone design and is expected to help Apple regain its dominance in the high-end segment.
Compared to Apple, Samsung is in a much more difficult position. For many years, Samsung has been competing fiercely with domestic brands in the low-end market, but it has always been difficult to achieve a decisive victory. In order to regain its popularity, Samsung has had to set its sights on emerging areas such as artificial intelligence and smart living.
Samsung's latest Galaxy phone has been deeply integrated with artificial intelligence technology, which can interact intelligently through voice and gestures. Samsung is also promoting the smart home ecosystem, which seamlessly connects mobile phones with home appliances, wearables and other products to provide users with a smart life experience.
Even in these emerging areas, Samsung faces stiff competition from domestic brands. Xiaomi, OPPO and other companies are also increasing investment in the field of artificial intelligence and smart home, and have launched a series of smart hardware products. This new war will determine the pattern of the future smart life market.
In addition to Apple and Samsung, the outlook for other foreign mobile phone brands is also not optimistic. Brands such as Sony and LG have exited the Chinese market in favor of other business areas. Although old mobile phone brands such as Nokia and Motorola are still struggling in the Chinese market, it is difficult to regain the glory of the past.
The development prospects of domestic mobile phone brands are much more optimistic. With the advantages of localization and a deep understanding of emerging markets, they not only dominate the low-end market, but also continue to penetrate the high-end market.
Take Xiaomi as an example, the company's latest Xiaomi 13 series flagship is not only comparable to Apple's and Samsung's top flagships in terms of hardware configuration, but also has excellent performance in imaging systems and artificial intelligence. The Xiaomi 13 series is only about half the price of Apple and Samsung's flagship models, and the value for money is staggering.
Similar to Xiaomi, OPPO and vivo are also increasing their investment in the high-end market. OPPO's FindX series and vivo's iQOO series have become the main force in the domestic high-end flagship market, and have begun to gain popularity in overseas markets.
The development of domestic mobile phone brands has not been smooth sailing. As their influence in the global market continues to expand, they will inevitably face more scrutiny and restrictions from governments. The U.S. government has repeatedly cited "national security" as an excuse to restrict the business development of Chinese brands such as Huawei in the U.S. market.
Patent disputes and technical blockades may also become stumbling blocks to the development of domestic mobile phone brands. Due to the long-term dependence on the patented technology of foreign companies, the independent innovation ability of domestic mobile phone brands in the core technology field is still weak, which will seriously restrict their development space in the future competition.
The rise of domestic mobile phone brands has become an irreversible trend. Driven by new technologies such as 5G, artificial intelligence, and folding screens, the smartphone market is undergoing profound changes. Whoever can seize the opportunity of this change will dominate the smartphone market of the future. Both domestic and foreign brands will be tested in this new round of "smartphone war".