However, according to a data released by Canaccord Genuity, a Canadian investment bank, in the fourth quarter of 2016, although Apple only accounted for 18% of the global smartphone market, it captured 92% of the smartphone market.
All of a sudden, the news that "the profit of the smart phone industry has been squeezed by Apple" is even worse.
Michael Walkley, an analyst at Canaccord Genuity, said in a report that four of the world's leading smartphone makers had made four profits in the fourth quarter of last year, namely Apple, Blackberry, Samsung Electronics and Sony. Among them, Samsung Electronics accounted for 9% of the profits of the smartphone industry in the first quarter, Sony accounted for 1% of the profits, and BlackBerry's profit was less than 1%.
Wait, does this mean that Chinese brands such as Huawei, OPPO, vivo, Xiaomi, and Jinli are losing money? Obviously not. In fact, the Daily Economic News (micro-signal: nbdnews) reporter found that the statistics do not include Chinese manufacturers such as Huawei, OPPO, and vivo. The report only includes Apple, Samsung, Blackberry, LG, SONY and Microsoft.
Apple's market share in China continues to declineA research report that does not have statistics on Chinese mobile phone companies is clearly not representative of the global mobile phone market.
Recently, Counterpoint, a technology market research organization, released the latest survey results for the global mobile phone market. In 2016, global smartphone shipments reached nearly 1.5 billion units. Among them, Chinese brand shipments totaled 465 million, contributing nearly one-third of global shipments. For the whole year of 2016, the global total shipments of mobile phones increased by 2.3% from the previous month, of which Chinese brands increased by 6% quarter-on-quarter, showing an overall upward trend.
Huawei, OPPO, vivo, Jinli and other well-known brands have occupied 58% of the total shipments of Chinese brands, occupying half of the country. The report data is calculated:
In 2016, Huawei shipped 140 million units, a 21% increase from 2015;
OPPO shipments were 100 million units, an increase of 109% compared to 2015;
Vivo shipments were 78 million units, an increase of 78% compared to 2015;
Gionee shipped 40 million units, a 21% increase from 2015.
Another well-known agency IDC latest report shows that in 2016, China's smart phone market grew by 8.7%, and the top five mobile phone manufacturers in terms of shipments were OPPO, Huawei, vivo, Apple and Xiaomi. Among them, OPPO mobile phone shipments in 2016 were 78.4 million units, with a market share of 16.8%, an increase of 122.2%. Huawei's mobile phone has 76.6 million units, with a market share of 16.4%, ranking second in the domestic market, up 21.8% year-on-year. The shipment volume of vivo reached 69.20 million, with a market share of 14.8%, a year-on-year increase of 96.9%, ranking third.
In the data of Counterpoint and IDC, the rankings of OPPO and Huawei are quite different, because the former counts the global shipments, while the latter counts the domestic market.
Behind the growth of Chinese brands, Apple's market share is declining. In the Chinese market alone, IDC's data shows that Apple's shipments to China fell from 58.4 million in 2015 to 44.9 million in 2016. At the same time, according to the latest IDC quarterly mobile tracking data, Apple's iPhone market share fell by 4% to 9.6%.
Chinese brand profitability needs to be improvedAlthough the huge sales of Chinese brands have had a strong impact on Apple and Samsung's market share, the fact that domestic mobile phone profits are quite meager is also true.
Daily Economic News (WeChat: nbdnews) Reporter's statistics Apple's four quarterly earnings report in 2016 found that in 2016, Apple sold a total of 215 million iPhones, with an overall net profit of $45.2 billion (about 307 billion yuan). In contrast, how about the profitability of several head companies in the Chinese mobile phone market? Because the top companies did not go public, they did not disclose the profit.
Wang Yanhui, secretary-general of the China Mobile Alliance, told the reporter of the Daily Economic News (micro-signal: nbdnews): "The profitability of Huawei, OPPO and vivo in 2016 has been greatly improved compared with the previous year. The three profit forecasts are not much different, net profit. Both are around RMB 10 billion, and this profit data has been confirmed in some enterprises. The three profit levels are in the first camp. The second camp’s Jin Li and Chuan are expected to be above RMB 10 due to profits. Lenovo, TCL, ZTE, Meizu and Xiaomi are on the verge of breakeven. "The net profit of 10 billion yuan is equivalent to 1/30 of Apple's net profit. For Wang Yanhui's statement, the reporter did not get proof from the mobile phone company.
According to a report by market research firm Strategy AnalyTIcs, in the third quarter of 2016, Apple's mobile phone operating profit reached 8.5 billion US dollars, accounting for 91% of the global operating profit of the smart machine industry. Huawei has become the most profitable Android phone manufacturer, earning a total operating profit of 200 million US dollars, ranking second in the world in absolute profit data, followed by vivo and OPPO. When the reporter asked Huawei for this data, Huawei responded that it could not be confirmed. According to this calculation, the data of Strategy AnalyTIcs and Wang Yanhui are not much different.
For Huawei, which ranks among the top three in the world, although the gap between sales and Apple is shrinking, the profit margins of the two are very different. Controlling scale and increasing profits are important goals for Huawei in 2017. “Ren’s recent criticism of the terminal’s poor earnings, Huawei’s mobile phone’s profit in 2016 has barely increased, and the profit margin has also declined. This year, it is necessary to control the investment. For the already profitable market, it is necessary to reduce the profit margin for retailers. The investment in emerging markets must also control the rhythm." Yu Chengdong, head of Huawei's consumer BG, said in an interview with reporters in January this year.
From the financial report, many Chinese brands are still in a state of loss. According to the financial report released by Lenovo Group, for the six months ended September 30, 2016, “If the non-cash expenses related to mergers and acquisitions derived from accounting treatment are excluded, the Group's mobile business will operate before the tax in the medium term. The loss recorded 2.77. In the case of US$100 million, the pre-tax operating profit margin is negative 7%."
TCL is also in a dangerous position. In the first half of 2016, the total sales volume of TCL intelligent terminals was 17.4 million units, down 12% year-on-year; net profit was 11 million Hong Kong dollars, down 98% year-on-year. Recently, it released the product sales data for December 2016 and the whole year. TCL Communication sold 68.77 million mobile phones in 2016, down 17.69% year-on-year; and smartphone sales reached 38.98 million, down 18.79% year-on-year.
"The performance of Apple in 2017 is uncertain, but Samsung hopes to recover. For Huawei, how to maintain the scale of growth while improving profits is a very big challenge in front of Yu Chengdong." Wang Yanhui said.
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