• Android brands are in the midst of a new wave of global expansion to grab a bigger share of the premium segment.
• In previous years, localization efforts, including local manufacturing and region-specific services, have helped them expand their footprints globally and deepen ties with consumers.
• Besides, these brands are introducing innovative features to make their premium offerings more attractive.
• As a result of all this, flagship offerings will become more diverse, ultimately benefitting the consumer.

Global smartphone sales, which had been declining in the past couple of years, have finally started recovering. They are projected to grow in single digits this year and show sustained growth in the coming years. This expansion will be fueled by steady growth in the high-end smartphone market and rapid deployment of generative AI (GenAI) globally. All this also presents an opportunity for Android brands to enhance their global presence.

Over the years, Chinese Android brands have demonstrated strong performance overseas, particularly in emerging markets, propelled by cost-effective products and democratized mobile technology for the mass market. Also, by tapping into more emerging markets, they are becoming more resistant to market fluctuations. For a long time, companies like Xiaomi and OPPO have seen their overseas sales contributions surpass domestic figures.

Note: Numbers may not add to 100% due to rounding

An effective localization strategy is essential to succeed in multiple regional markets. This includes local manufacturing, establishing distribution channels, developing features tailored to regional needs, offering localized internet services, and building strong local teams. Efforts on these fronts have greatly enhanced the Android brands’ ability to connect with consumers and adapt to diverse market dynamics.

Taking OPPO as an example, it has established an overseas manufacturing presence with investments in seven countries — India, Indonesia, Turkey, Pakistan, Bangladesh, Brazil and Egypt. Further, the brand’s retail network spans over 300,000 points of sales and 65,000 sales staff worldwide. OPPO also offers internet services globally, with its ColorOS reaching around 700 million monthly active users (MAU). Besides, its overseas app store has 260 million MAU, while its overseas browser app has 210 million MAU.

Now, Chinese Android brands are in the midst of their second wave of global expansion to grab a bigger share of the premium segment.

In the 5G era, the smartphone market is gradually trending toward premium offerings, with significant improvements across key elements like SoC, camera and display. Moreover, the emerging GenAI megatrend, along with the fast deployment of on-device GenAI applications, is further raising demands on hardware such as chipsets and memory.

From 2018 to 2023, the compound annual growth rate (CAGR) for smartphones priced above $600 was 6%. In 2024, sales in this segment are expected to exceed 300 million units. China is projected to remain the largest premium market, followed by North America and Western Europe. Markets such as India and the Middle East are also indicating fast growth and are likely to expand further on top of steady economic growth. Therefore, expanding in the premium segment would be a crucial step for Chinese OEMs to carry their successes forward.

Global customers could also be better off with more diversified choices. China’s premium smartphone landscape is quite different from the global one. In China’s >$600 segment, Apple still holds over 60% share but brands including Huawei, Xiaomi, OPPO, vivo and HONOR have been actively enhancing their flagship product lines by introducing industry-leading camera systems and other features.

In contrast, Apple and Samsung dominate the premium segment in markets beyond China. Consumers are largely limited to choosing between these two brands even when they have ample budgets.

Chinese smartphone OEMs are primed to further expand their global reach by moving into the premium segment, bringing advanced innovations like GenAI and top-tier imaging systems to a wider audience. With strong foundations in localization and a commitment to meeting regional demands, brands like OPPO, vivo and HONOR are set to offer more choices beyond the dominant Apple and Samsung in international markets. Hence, global consumers stand to benefit from a more diverse selection of premium devices.

Note: Numbers may not add to 100% due to rounding

Chinese Android brands have introduced many innovations to remain competitive in the highly challenging domestic market. These include advancements in imaging, foldable designs and battery life. Now, they are set to bring these innovations to a broader audience around the world. Such products include OPPO’s Find X8 series and vivo’s X200 series, and foldable models such as the HONOR Magic V3 and OPPO Find N3.

For example, OPPO Find X8 series emphasizes a slim form factor without compromising camera performance, packing powerful dual-periscope telephoto cameras in a light and thin body for the Find X8 Pro. Its AI Telescope Zoom feature combines hardware and AI capabilities, resulting in impressive zoom images reaching 10X and beyond.

*This blog is sponsored by OPPO