Media Contact

Ms. Pinchun Chou

Tel: +886-2-8978-6488 ext.669

Ms. Lindsay Hou

Tel: +886-2-8978-6488 ext.667

RSS Subscription
  NAND Flash  
  Consumer Electronics  
  Green Energy  
  Internet of Things  
  Automotive Electronics  
  Innovative Technological Applications  

Press Release

OPPO and Vivo to Surpass 40% in Production Volume Growth This Year as Competition Intensifies Among Chinese Smartphone Makers, Says TrendForce

Thursday , 06 / 30 / 2016 [ Analysts: Avril Wu ]

The global production volume of smartphones worldwide is expected to peak in the third quarter on account of effects from the peak shipment season, subsidies from Chinese telecom operators and back-to-school sales. This demand surge will also drive the smartphone component markets, and supply will become tight for memory, panels, application processors and other key parts. The latest report from the global market research firm TrendForce finds that Chinese smartphone brands will continue to witness substantial increase in their production volumes through 2016, with their average year-on-year growth rate reaching 11%. Huawei, OPPO and Vivo will be able to maintain strong market performances this year. LeEco, which experienced a rapid rise last year, will post notable production volume growth as well.

Huawei encounters setbacks in sales while LeEco’s smartphone business takes off with its production volume growth rate at above 300% year on year

“The Chinese market is ever-changing,” said Avril Wu, TrendForce smartphone analyst. “Short product lifecycle and fierce competition lead to constant shifts in the production volume ranking for domestic brands. Lenovo and Xiaomi were Chinese smartphone leaders in 2014, and then Huawei became the No. 1 domestic brand 2015 by registering an annual production volume of over 100 million units. This year, however, OPPO and Vivo have taken the spotlight in the home market.”

After becoming the leading Chinese brand by production volume in 2015, Huawei’s performance has started to slack. The sales of the Huawei’s newest flagship, P9, were not as robust as expected during the first half of 2016 even though it features a Leica-certified dual camera as the main selling point. Conversely, OPPO and Vivo’s flagships, which were released around the same time, have been well-received by consumers because of their sleek surface designs and fast-charging capability. The production volumes of both OPPO and Vivo’s flagship smartphones are expected to keep rising through the year. Based on the latest data, TrendForce has lowered this year’ production volume projection for Huawei to 119 million units, though this figure still represents a year-on-year growth rate of 10.2%. OPPO and Vivo’s projections on the other hand have been raised to 78 million and 66 million units, respectively. The year-on-year growth rates of these two brands will also exceed 40%.

The recent and rapid ascendency of another Chinese brand, LeEco, has also caught the attention of the market. Backed by a parent company that is flushed with both cash and video content, LeEco has aggressively expanded into different hardware device markets, from Internet-connected TV sets to smartphones. LeEco’s smartphone production volume just reached 5 million units last year, but this figure is expected to surpass 20 million this year, translating to a year-on-year growth rate of over 300%. Furthermore, LeEco has become the largest shareholder of Coolpad, another compatriot smartphone maker. After the tie-up between the two companies is completed, LeEco devices, which for now are limited to online sales, will become available in Coolpad’s physical retail stores. Looking ahead to 2017, TrendForce forecasts that LeEco will see another huge increase in its annual smartphone production volume.

ASUS’s production volume growth is expected reach 34% year on year whereas HTC will suffer an annual decline of almost 30% 

Looking at Taiwanese smartphone brands, ASUS has made significant strides since it entered the market three years ago with high cost-performance offerings. In order to boost sales, ASUS this year has decided to switch most of its devices’ application processors from Intel’s chips to Qualcomm’s as the latter have better capabilities and emit less heat. ASUS is currently the leader among Taiwanese brands and its production volume for 2016 is projected to hit 21.5 million units, up 34% from the 2015’s figure of 16 million.

The other major Taiwanese electronics brand, HTC, has dramatically shifted its product development focus to VR headsets. However, a survey of its product portfolio suggests that smartphones are still the company’s core business. Due to strong competition from Chinese brands, the production volume of HTC’s latest flagship, the HTC 10, will only be around 1 million units. The Taiwanese brand will take on additional smartphone production in the second half of 2016 as a result of receiving manufacturing contracts for Nexus phones from Google. Nonetheless, its overall production volume for the year will amount to only 13 million units, down 27% from last year’s 18 million. Current analysis indicates that a smartphone maker must achieve the minimum production volume of 40 million units to reach this year’s global top 10 ranking. Hence, it is highly unlikely that HTC will be able to regain its past glory as a major brand in the market.

To keep updated with our press releases, please follow our social media pages. facebookGoogle+TwitterLinkin

smartphone production OPPO VIVO Huawei Lenovo Xiaomi LeEco(LeTV) ASUS HTC

TrendForce Press Center Copyright Notice
TrendForce grants you a limited license to use and/or republish any of the press releases on TrendForce Press Center for any legitimate media purpose (including copying and redistributing the content of press releases in any format and via any outlets), provided that you follow these license terms:

1. Reference TrendForce as the source on your works, or include a hyperlink to the original release on the TrendForce site.
2. Do not modify any press release wording, or maliciously alter its related information. Users are subject to any civil or criminal liabilities if the information displayed in the copy or redistribution of press releases is inconsistent with the original materials on TrendForce Press Center.
3. Do not modify or add hyperlinks, including but not limited to adlinks, within the press release. The authorization of press releases on TrendForce Press Center does not grant users the right to suggest, approve or endorse their value-added derivatives on behalf of this body.

If your citations of press releases contain mistakes and/or have information missing, TrendForce may, in its sole discretion, direct you to remove the content distributed via TrendForce from your site at any time and for any reason, and you agree to comply with such request.