Value Brand Xiaomi Overtakes Apple in Q2 China Smartphone Sales, Report Says

Smartphone sales growth in China reversed course in Q2, slipping 3 percent from Q2 2916 to 113 million shipments, said a Tuesday Canalys Research report. The drop followed six consecutive growth quarters, said Canalys. Xiaomi replaced Apple, which has been counting on China as a growth market for iPhone sales, as No. 4 smartphone vendor, shipping just under 15 million phones, up 60 percent from Q2 2016, said the report. Huawei shipped over 23 million phones in Q2 to lead the market for the second consecutive quarter, and Oppo ranked second, shipping just over 21 million units. Vivo, in third place, shipped more than 16 million smartphones, said Canalys. Samsung also had shipment declines, it said. “Xiaomi still offers the best value in the Chinese market, and it remains the preferred choice for price-conscious consumers,” said analyst Lucio Chen. The online channel is key for Xiaomi, and its growing network of “experience stores” will be a threat to Oppo’s and Vivo’s store dominance, said Chen. On the most recent earnings call, Apple CEO Tim Cook downplayed reports of a slowing China market, saying combined FY 2017 Q1 and Q2 performance was much improved over the second half of last year, driven by iPhone 7 Plus sales.