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Chronicles

The story behind the story

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Oppo becomes the top smartphone brand in China, reaching a market share of 21% in January, followed by Vivo at 20% and Huawei, Apple, and Xiaomi at 16% each

Counterpoint Research Varun Mishra

Context & Ripple Effects

Oppo and Vivo had already built domestic shipment share through a focus on traditional retail, according to earlier coverage of their retail-led gains. By 2017, Huawei, Xiaomi, Apple, Vivo, and Oppo together accounted for 91% of China’s phone market in Kantar’s market-concentration snapshot.

January’s ranking puts Oppo narrowly ahead of Vivo, while Huawei, Apple, and Xiaomi share the next position. The result matters less as a breakout by a new entrant than as a reshuffling within an already concentrated five-brand contest.

First-order effects

  • Oppo takes the January leadership position at 21%, with Vivo one point behind; Huawei, Apple, and Xiaomi each sit five points below Oppo at 16%.
  • Vivo becomes Oppo’s closest immediate rival, while Huawei, Apple, and Xiaomi enter the next sales period from an equal reported share position.

Second-order effects

  • The one-point gap between Oppo and Vivo makes their established retail competition more consequential, as either brand can displace the other without first overcoming a large share deficit.
  • Huawei, Apple, and Xiaomi face a three-way contest for the next tier, with each needing to gain relative share against both the two leaders and its tied peers.

Third-order effects

  • If this ordering persists, China’s smartphone market will remain structured around share shifts among the same small group identified in the earlier 91% concentration reading, rather than broad fragmentation.
  • The January result reinforces a market in which domestic brands Oppo, Vivo, Huawei, and Xiaomi collectively set the competitive cadence while Apple remains one of the concentrated leaders.

The trend: China’s smartphone market is evolving through tight leadership rotations among a concentrated group of domestic brands and Apple, rather than through new-brand disruption.

Discussion

  • @tarunpathak Tarun Pathak on x
    @oppo has also emerged as the leading 5G smartphone brand in China in the sub-$600 price segment. This should help the brand to expand in mature Western Europe markets. The upcoming Find X series will ride on the momentum @varun_m01 @CounterPointTR https://www.counterpointresearc…
  • @r3dash Ershad Kaleebullah on x
    Wow! Things are changing. I genuinely feel bad for Huawei. https://twitter.com/...
  • @neiltwitz Neil Shah on x
    There you go!! BIG NEWS coming out of China Smartphone market in Jan'21: @oppo ramps up to become the largest smartphone brand for the first time displacing Huawei. OPPO's sales grew 33% month-on-month (MoM) & 26% year-on-year (YoY) during the month. https://www.counterpointresea…