This report is for Market Pulse November Edition analysing the sell through data of October 2015.
Overview:
- Apple is the dominant force in the market. However this is more a function of strength in operator channels and lack of significant competition than any conspicuous advantage that Apple can realistically lay claim to. It solves consumer problems as well or better than Android and it leaves operators with no option but to support it, however reluctantly.
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Samsung, as the strongest Android player, should be resisting the Apple tide, but it is conspicuously weak – especially in China. In the US market Samsung retains the support of carrier partners, but this is not enough to prevent it haemorrhaging market share. Huawei and Xiaomi are the strongest Android players in China now though it is only Huawei that shows momentum. Fast growing ViVo and Oppo are also performing well, but at much lower volumes.
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China’s seasonality is gradually shifting as it focuses on finding new reasons to encourage consumer spending. Singles’ Day was unheard of 10 years ago, but the first two weeks of November – leading up to 11/11 are now an important contributor to overall market volumes. The overall effect is to introduce mini-peaks into annual sales patterns with 4Q becoming gradually more significant.
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Brazil’s economy is suffering as it contends with a devaluation of the Real (BRL) and a consequent rise in the rate of inflation. Brazilian consumers are responding by reducing spending, which is impacting the mobile market. Handset sales in Brazil are down by ~20% y/y. The impact of the economic troubles is likely to last well into 2016.
