• Chinese OEMs, including HONOR, iQOO, OPPO, OnePlus, vivo and Xiaomi, recently launched flagship models, intensifying competition in the premium segment.

• These new models show advancements in both hardware specifications and software features, including intelligent AI functions.

• The launches reflect OEMs’ strategies to expand in the high-end market to seek more growth opportunities.

• China’s premium segment has been growing faster than the overall smartphone market. In H1 2024, the >$600 segment’s sales rose 8% YoY while that of the overall market rose 4% YoY.

Chinese OEMs recently updated their flagship product lines within a short span of time, intensifying competition in the premium segment and for the iPhone 16 series. These upgraded devices, which include the HONOR Magic 7, iQOO 13, OPPO Find X8 series, OnePlus 13, vivo X200 series and Xiaomi 15 series, demonstrate significant strides made by China’s smartphone OEMs in both technological innovation and user experience. Notable improvements have been made in hardware specifications, including in photography, battery life and processors. Further, recent groundbreaking developments related to generative AI (GenAI) give many OEMs an opportunity to leapfrog to the premium segment by offering customers intuitive and natural user experiences never seen before.

The OEMs’ ambition to expand their presence in the premium segment is driven by the fast growth and huge potential of this segment. The premium market grew 16% YoY in 2023, compared to the 1% YoY decline in the overall market. Further, in H1 2024, the segment’s sales rose 8% YoY while that of the overall market rose 4% YoY.

China Smartphone Market YoY Growth vs Premium Segment YoY Growth, Q2 2023 – Q2 2024

Source: Counterpoint Market Pulse Service

Analyst Takeaways

Ivan Lam:

HONOR’s Magic 7 series builds upon the strengths of its predecessor, with enhancements to every key feature. Durability, imaging quality, and system smoothness have all been greatly improved. The new MagicOS 9.0, with its AI functions, provides users with a smarter, more convenient experience and showcases the potential of AI agents. The MagicOS 9.0’s AI leverages a self-developed visual AI model to understand the user’s screen, including buttons and text. So, the AI could help users perform cross-application tasks such as sending files, ordering food and booking tickets with just one voice command.

Alicia Gong:

iQOO’s 13 model stands out as a very cost-effective and high-performance flagship aimed at users with strong demand for performance, such as mobile gamers. It excels in key areas like display quality, chip tuning, independent gaming chip, sound chamber optimization, battery charging, battery life, and heat dissipation —all of which are at industry-leading levels, making the device an ideal choice for mobile gamers.

Flora Tang:

OPPO’s Find X8 series emphasizes a slim form factor without compromising camera performance, particularly in periscope cameras, which is achieved through an innovative structural design in the 3X periscope camera module. In addition to the slim design, OPPO highlights functions and features such as Rapid Burst Shooting, Gen AI, system-level engines, and advanced battery materials for the Find X8 series. We expect OPPO to target younger and more dynamic consumer groups with this series.

Shenghao Bai:

OnePlus’ 13 model maintains the brand’s commitment to its slogan of “Never Settle”. Equipped with the powerful Qualcomm Snapdragon 8 Elite SoC, high-quality screen and large-capacity battery, it offers a balanced performance across display, processors and photography. It also features excellent haptic motor feedback and a friendly unlock experience with an ultrasonic fingerprint sensor, contributing to a smooth, well-rounded experience.

Ethan Qi:

vivo’s X200 Pro mini is a new member of the vivo X series. A true Pro-level compact flagship, it is undoubtedly one of the standout releases. With its 6.31-inch display, it offers an excellent experience when using it with one hand. Further, it features the same primary camera as the X200 Pro while also supporting Zeiss Super Telephoto. The imaging design across the entire vivo X200 series not only builds upon the long-zoom strengths of the previous flagship but also further enhances the main camera for video performance, particularly in low-light conditions. The device is equipped with a 5700mAh Blue Ocean battery, balancing both performance and battery life. The launch of the vivo X200 Pro mini underscores vivo’s commitment to exploring niche markets.

Archie Zhang:

Xiaomi’s 15 series has seen improvements across all major features, aiming to inherit the success of the 14 series. As of August, the 14 series had sold over 6 million units globally. Recognized for its low-price, high-spec position, the Xiaomi 15 series has shown the brand’s ambition to fully benchmark its design and user experience to iPhone. Besides, after accumulating user feedback following the release of HyperOS, the new version shows a substantial leap in the system’s smoothness. This upgrade signals Xiaomi’s strong push into the high-end market.