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Vivo and Xiaomi Compete for 5th Place in the Smartphone Market

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Vivo had a share of 5.3% in the global smartphone market

Another Chinese smartphone company, Vivo was the world’s fifth-largest smartphone manufacturer in 2016. According to market research firm IDC, Vivo shipped 77.3 million smartphones in 2016, a significant rise of 103% YoY (year-over-year) compared to shipments of 38.0 million in 2015.

At the end of 2016, Vivo followed Samsung (SSNLF), Apple (AAPL), Huawei, and OPPO in the smartphone market with a share of 5.3% compared to 2.6% in 2015. At the end of 2Q17, Xiaomi overtook Vivo to become the fifth-largest player in the global smartphone market. Xiaomi’s shipments rose almost 60% YoY to 21.2 million units in 2Q17, up from 13.3 million units in 2Q16.

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Performance in India and China

China’s smartphone market is dominated by domestic players. Counterpoint Research stated that Huawei and Vivo are the fastest-growing smartphone brands in China, followed by OPPO and Xiaomi. These top four companies account for almost 70% of the total market in China.

With a share of 13%, Xiaomi is the second-largest brand in India. Xiaomi is followed by Vivo with a market share of 12%, OPPO with a share of 10%, and Lenovo (LNVGY) with a market share of 8%.

According to Counterpoint Research, Xiaomi and Vivo have shifted their distribution strategies in India. While Vivo was previously an offline brand, it has started to focus on online channels such as Amazon (AMZN) to drive sales. In comparison, Xiaomi was previously an online brand and is now targeting offline channels to address growing demand in Tier II and Tier III cities.

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