An Android mascot is seen in front of a displayed logo of Apple in this photo illustration taken in Zenica, Bosnia and Herzegovina, May 5, 2015.

An Android mascot is seen in front of a displayed logo of Apple in this photo illustration taken in Zenica, Bosnia and Herzegovina, May 5, 2015. Reuters/Dado Ruvic

Huawei remains as the number one smartphone vendor in China, according to new sales and usage data from the country. Apple is reportedly losing its grip on the market along with rival Samsung while Xiaomi is gradually making its way up the mountain.

Smartphone shipments in China dropped three percent following a year and a half of growth. Huawei is still the country’s top smartphone brand with its more than 23 million shipments, leading the industry for the second consecutive quarter. Oppo plays second fiddle to the Mate 9 maker with its over 21 million shipments even though the company experienced a significant 37 percent year on year growth.

Retaining its third place status is Vivo with its over 16 million shipments despite losing ground on Huawei and Oppo between April and June. Global technology market analyst firm Canalys, which provided the new numbers, lauds fourth placer Xiaomi for being the “standout vendor” after the Redmi maker knocked the California-based tech giant out of its spot. Xiaomi shipped almost 15 million smartphone units in China during the second quarter, which is an over 60 percent continuous growth.

“Xiaomi still offers the best value in the Chinese market, and it remains the preferred choice for price-conscious consumers,” according to Canalys research analyst Lucio Chen. “The online channel continues to be a key route to market for Xiaomi and this quarter saw it take the lead in the 618 online sales events across online retail platforms, such as JD.com and Tmall. Redmi has had strong uptake in the mid-tier, going head to head with Oppo’s A series and Vivo’s Y series.”

Chen added that Xiaomi’s budding network of “experience stores” is the difference maker. Oppo and Vivo may have control of the offline scene but Xiaomi’s approach makes for a great counterattack. What’s more, the Beijing-based company doesn’t skimp out on the quality, built and design of its products.

Those that round out the top ten – including Apple, Samsung and Zhuhai-based Meizu – have individually experienced a drop in annual shipments between April and June. Meanwhile, those that are included in the top five were responsible for almost 75 percent of the overall shipments, with Huawei, Oppo, Vivo and Xiaomi all experiencing a 10 percent increase in shares compared to Q2 2016. According to Canalys research analyst Hattie He, a “diverse channel” approach is needed to compete on the Chinese market.

“Huawei and Xiaomi have strong online brands, and are now rapidly growing their offline channels,” He said. “Oppo and Vivo face greater pressure on their mid-range from Redmi and Honor. The failure to establish online channels will slow the momentum of these rising stars.”

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