Huawei's recent moves have drawn attention as its newly launched Mate 70 smartphone caught the eyes of many tech enthusiasts. Yet, as important as Huawei is, it seems consumers are more interested in the mid-range segment, where brands like Vivo, Oppo, and Nubia are targeting the masses. During the launch of the Mate 70 smartphone, which starts at 5,499 yuan ($760), analysts noted it wasn’t met with the enthusiasm the company hoped for, according to brokerage Jefferies.
This trend indicates something significant about the current state of the Chinese smartphone market. While Huawei aims to appeal with its flagship devices, other competitors are raking it in by offering affordable models packed with features aimed at younger users, who are the primary consumers today. With new models from Vivo and Oppo priced between 2,000-4,500 yuan, they are clearly aiming to rope buyers by offering more functionality at lower price points. These include high-resolution displays, rapid charging, and AI-enhanced photography features.
For example, Vivo recently introduced its S20 series, well-known for its photography capabilities, which boasts features like AI lighting adaption and advanced facial optimization—particularly appealing to selfie enthusiasts. The S20 models range from 2,299-3,999 yuan, also presenting stylish designs to lure younger female buyers.
One Weibo user, Xiaosusu, praised the S product line, emphasizing how domestic phones are elevoping not only in performance but also aesthetics, contributing to their decision to favor these models over pricier brands. This sentiment reflects the growing trend among consumers to prioritize quality and practicality over brand loyalty.
Meanwhile, Vivo’s sub-brand iQOO unveiled its Neo10 model, priced at approximately 2,299 yuan and focused on optimizing gaming experiences. This is just one of several new models hitting the market, as brands aim to attract buyers seeking advanced features without hurting their wallets. The popularity of the mid-range devices is underscored by the success of these brands, who collectively captured over 80% of the domestic market, signaling strong growth potential.
The sales numbers paint a vivid picture—sales of foreign-branded smartphones like Apple’s fell nearly 44% year-on-year by October, as reported by the China Academy of Information and Communications Technology, even as overall smartphone sales climbed slightly by 1.8%. This drop suggests Huawei and others are successfully appealing to national pride among consumers, who increasingly prefer local technology brands over foreign competitors.
Huawei has also strategically maneuvered through the tech restrictions imposed by the U.S., releasing its Mate 70 series equipped with Android's HarmonyOS, which empowers the device to operate independently of Western products. This shift not only keeps Huawei on par with competitors but also signifies its commitment to technology self-sufficiency, especially significant following the U.S. sanctions on the company. Huawei's capacity to self-supply the chips needed for its devices plays out as both innovative and strategically necessary as global tech tensions rise.
Besides Huawei's attempts to dominate the high-end market, brands like Oppo and Nubia are not far behind. Oppo recently rolled out its Reno 13 model, catering to the younger demographic with trendy features aimed at those who love social media. Similarly, Nubia’s Z70 Ultra promises professional-level photography with cutting-edge display technology, showcasing the competitive spirit of the mid-range phone sector.
Overall, the Chinese smartphone market dynamics reflect rapidly changing consumer preferences. Manufacturers are vying to provide the best value for money, focusing on innovative features, practical designs, and affordability as buyers increasingly seek smarter yet simple-to-use devices. This year, Chinese smartphone sales have enjoyed an upswing, with 250 million units sold by October, marking an 8.9% rise from the year prior.
Apple's challenges are significant, particularly as CEO Tim Cook undertakes visits to revive interest and explore potential responses to the shifting consumer dynamics favoring local brands. Chinese consumers are demonstrating fierce allegiance to their domestic manufacturers, particularly as they deliver exceptional quality at more accessible prices.
The competition is only expected to ramp up as brands innovate and evolve to meet the demands of their consumers. This will likely catalyze the growth of the Chinese smartphone market, shaping it as both competitive and exciting as it navigates the waters of global commerce under the rising shadows of trade restrictions.