With smartphone demand stagnant in the last quarter of 2015, the market lowered shipment targets and spent the past three months on channel inventory digest.
This is according to market analyst firm TrendForce, which notes the stock up of Chinese-branded smartphones started to pick up in the middle of February, as the inventory adjustment period came to an end.
At the same time, Avril Wu, smartphone analyst at TrendForce, says new devices unveiled at Mobile World Congress generated additional demand. Moreover, she adds, mobile carriers in China have increased their subsidies for high-end 4G smartphones to boost both the market penetration of 4G technology and consumer purchases.
Based on TrendForce's latest analysis, global smartphone shipments will grow by just 5.7% annually in 2016. However, the combined shipments of Chinese brands will register a much larger annual growth of 15.6%.
Chinese vendors will continue to be the main driver of smartphone shipment growth through this year as demand rises in the emerging markets such as India and the Association of Southeast Asian Nations countries, says TrendForce.
Fellow analyst firm IDC's recent forecast on the smartphone market notes 2015 is likely to be the last year of double-digit smartphone growth.
According to IDC, the 2015 calendar year finished with 1.44 billion smartphone shipments worldwide, which were up 10.4% over 2014. IDC's most recent projections show 2016 shipments of 1.5 billion, or 5.7% growth over 2015. The trend of single-digit year-over-year growth is expected throughout the forecast, with volumes growing to 1.92 billion in 2020.
Looking at the Chinese vendors, TrendForce notes Huawei's smartphone shipments passed the 100 million mark for the first time in 2015, arriving at 108 million units in total. Huawei intends to maintain its strong momentum this year with the soon-to-be released flagship P9, which features dual camera, it adds.
TrendForce estimates Huawei will ship nearly 130 million units of smartphones this year, up 16.7% from 2015. Lenovo has undergone a difficult restructuring period following its acquisition of Motorola.
Wu points out the company aims to significantly raise the profit of its smartphone business this year, with an annual shipment growth target of at least 20%. Xiaomi's smartphone shipments fell short of the company's expectation last year.
"In order to turn things around, the company is intensifying its efforts in India and other emerging markets. Xiaomi is also betting on its latest flagship, Mi 5, to drive its shipments. OPPO and Vivo's combined shipments almost hit 100 million units last year owing to their vast and loyal physical retail networks. The two brands' combined shipments for this year are projected to reach 110 million units. In addition to China, OPPO and Vivo have successfully expanded into the Southeast Asian countries," Wu says.
Share