Apple's Q2 Share in China Plunges While Top 3 Chinese Vendors Grow

The top three totaled 47 percent of the domestic market in Q2, compared with 43 percent in Q2 2015 and 45 percent Q2 2016 on “aggressive marketing” and brand-building efforts, said IDC. “The iPhone SE was not a hit in China, where consumers prefer larger screen-sized phones,” said IDC analyst Xiaohan Tay. Nearly 90 percent of phones shipped in China in Q2 had screen sizes 5 inches and above, Tay said. Apple fans are holding out for the next wave of larger iPhones in Q3 “which could likely give Apple a boost in China,” she said. Oppo and vivo thrived on the strength of their offline channels, where their shops and advertisements cover most of the third-to-fifth-tier cities, providing a convenient option for consumers to visit stores for after-sale service, said Tay. In the first- and second-tier cities, smartphone vendors continued to focus on sponsorships of key entertainment events to win consumers over, Tay said. Oppo and Huawei took different marketing routes in Q2, with Oppo promoting its camera selfie features and fast-charge technology with the tagline, “Charge for 5 minutes to be able to talk on the phone for 2 hours,” she said. Huawei focused on the P9, one of the top-selling products in the quarter, promoting its thinness and the quality of the camera’s Leica lens, IDC said. Oppo went the celebrity route, hiring brand ambassadors to launch its R9 series. “After vendors witnessed Oppo’s success with its R9, they also started riding on the trend of hiring celebrity endorsers to represent their brand and appeal more to the young crowd,” said Tay.