DAILY | HONG KONG EDITION Wednesday, April 7, 2021 | 15 BUSINESSFOCUS Domestic handset market expects 2021 boom New high­end models, desire to upgrade fuel 236.6% year­on­year rise in country’s smartphone shipments during February

By MA SI [email protected]

Spring is in the air and Chinese Such a revival signals smartphone makers are anticipat­ that the spring battle ing that the new season will help the industry to recover the ground it for 5G smartphone lost due to the COVID­19 epidemic market supremacy fallout. Companies are vying with each in China is game on, other to unveil the latest cutting­ especially in the edge premium handsets after a new report showed that smart­ high­end segment.” phone shipments in China rose by Fu Liang, an independent 236.6 percent on a yearly basis in telecom expert February. During the month when China’s Spring Festival took place, more high­end flagship smartphone than 21.3 million smartphones series Magic, which will reach or were shipped out of factories to even surpass the level of ’s retailers across the country, said the premium Mate and P series smart­ China Academy of Information and phones. Communications Technology, a Bei­ He said that although only two jing­based government think tank. generations of Magic smartphones That is in sharp contrast to Febru­ have been unveiled in the past four ary 2020 when the pandemic was years, has invested a lot of paralyzing the nation and almost all money in these two phones. In the smartphone shops struggled to keep future, the Magic series will contin­ their doors open. ue to be positioned for exploring Spring is a time of rebirth, renew­ new technologies. al and awakening, and Chinese “We will continue listening to smartphone vendors now see the consumer preferences while lever­ season as a perfect time to rekindle aging our technological edge to competition for top bragging rights meet demand at the same time,” in the nation. Zhao said. On March 23, Honor In March, dozens of smartphone unveiled its latest 5G smartphone — launch events were held. Vivo alone the Honor V40 Lite Luxury Edition held three events to release three — featuring slim design and fast new phone series in the month and charging technologies. its rival also held two. And Visitors experience newly launched products at a company outlet in Beijing on March 30. PROVIDED TO CHINA DAILY The senior executive said Honor because smartphone companies will also further expand its retail tend to select auspicious days to footprint in the country by setting unveil new products, they often end Sensing the opportunity left by will ramp up efforts to expand its up offline stores in more cities. The up releasing phones on the same Huawei in the $600­and­above presence in the offline retail chan­ plan came after Honor had opened day. premium segment, local smart­ nels, with more than 1,000 more than 2,300 offline stores as of For instance, Vivo and another phone makers are all beefing up employees now working in this the end of 2019. smartphone maker both resources to show consumers their area. Jian Qin, deputy general manager unveiled their new 5G phones on advances in product design, Rival made its ambitions of China Mobile, the world’s largest March 3. Realme and Nubia both research and development, as well even clearer after the brand rose telecom operator by mobile sub­ held launches on March 4. as ambitions in expanding retail through the ranks to become the top scribers, said: “This year will see In the second half of March, the channels. smartphone brand in China for the explosive growth of 5G smart­ battle was even fiercer. From Liu Zuohu, founder and CEO of first time in January, with a market phones. We forecast that over 350 March 22­25, device makers Hon­ OnePlus, a Chinese smartphone share of 21 percent, said Counter­ million units of smartphones will be or, Oppo and Vivo unveiled their vendor known for its dedication to point Research. sold in China and 280 million units new 5G smartphones one after design details, said the company Liu Bo, president of Oppo China, of them will be 5G handsets. We another. Four days later, on March will spare no efforts this year to said the company aims to be one of think nearly 300 million users on 29, Xiaomi unveiled its latest flag­ expand its presence in the high­end the three major players that domi­ our telecom network may upgrade ship models. segment. nate the $600­and­above market in to 5G.” Such a frenzied smartphone “We will invest 1 billion yuan the future. The other two players are High enthusiasm for 5G smart­ release schedule has not been seen ($152.9 million) over the next three Apple Inc and Samsung Electronics phones are also becoming more evi­ in recent years as the global smart­ years to continuously seek break­ Co Ltd. dent. Chinese smartphone vendor phone market hit a saturation throughs in color and professional In March, Oppo also unveiled its A woman passes a Huawei outlet in Beijing on Oct 11. ANDY WONG / AP Realme said on social media plat­ point and people did not have a experience to create the ultimate latest premium smartphone series form Weibo last month that Realme desire to upgrade their handsets, mobile imaging experience,” Liu the Find X3. The smartphone model GT earned in excess of 100 million said Fu Liang, an independent tel­ said. is expected to be Oppo’s biggest­ever midrange segment strengthened the world’s top 500 companies as it yuan in just 10 seconds on the first ecom expert who has been follow­ The company announced a part­ push to grow its share in the premi­ the product portfolio for Oppo and fast tracks efforts to grow its pres­ day of its sales on March 10. ing the industry for more than a nership with Swedish professional um smartphone segment. it was able to cater to the 5G ence in the high­end smartphone But the fast rhythm of new 5G decade. camera maker Hasselblad in March Varun Mishra, senior analyst at demand in China across a wide segment and open more offline smartphones popping up in the “Such a revival signals that the under which Hasselblad will help its Counterpoint Research said: price band. This was further retail stores. market is sometimes overwhelming spring battle for 5G smartphone smartphones develop better photo­ “Oppo has been successfully able helped by the decline of Huawei.” Honor aims to reach annual reve­ consumers. market supremacy in China is game taking capabilities. to reposition its product lines in In the face of such intensified nue exceeding 100 billion yuan Zhang Wentao, a white­collar on, especially in the high­end seg­ Such a commitment is already 2020. The rebranding of the Reno competition, Honor — a brand that soon, Zhao said, but he did not dis­ employee in Beijing, is searching for ment. This comes while Huawei, the reflected in the latest OnePlus 9 series and launching a more capa­ gained independence from Huawei close more details including its top a new 5G smartphone. former longtime champion of the series, unveiled on March 24, featur­ ble device at a lower price point in November — is devoting its line last year. Before Huawei sold “So many new phones have come local market, was impacted in its ing cameras that Hasselblad helped than its predecessor helped Oppo resources to regain lost market Honor in November, Honor’s annu­ out and some of them look very sim­ smartphone business following develop. capture the affordable premium share. al shipments of smartphones once ilar. I am a bit confused. I will try restrictions by the United States OnePlus, which chiefly relies on segment. The strong momentum Zhao Ming, CEO of Honor, said exceeded 70 million units. three of most popular models and government,” Fu said. e­commerce sites for sales, said it of the company’s A series in the the company plans to be among Zhao said Honor will launch a pick one,” Zhang said. Smart home appliances going to head of class

By MA SI increase of 3 percentage points the product structure of China’s the report from the China Center over the previous year. By compari­ home appliance market and raised for Information Industry Develop­ China’s home appliance market is son, retail sales of home appliances average prices. ment added. expected to return to pre­pandemic via offline channels were 413.4 bil­ Data from JD showed that in Experts said the growing desire levels this year as high­end and lion yuan — a year­on­year 2020, sales volume of TVs priced for smarter and high­end products smart products grow in popularity, decrease of 21.13 percent. above 10,000 yuan on its platform is expected to continue in 2021, and according to a report from the China Rupert Hoogewerf, chairman and increased by more than 70 percent it is bringing significant opportuni­ Center for Information Industry chief researcher of Hurun Report, year­on­year, and the market pene­ ties for Chinese and foreign home Development, a Beijing­based think said earlier that 5G, internet of tration rate of WiFi­enabled smart appliance makers alike. tank. things and big data have huge devel­ air conditioners increased from 49 German home appliance manu­ The report showed that the retail opment prospects for the home percent in the previous year to 63 facturer BSH Hausgeraete, known sales in China’s household appli­ appliance industry. percent. for brands such as Siemens and ance market reached 833.3 billion The effect of online channels on Retail sales of refrigerators priced Bosch, said it saw a “significantly yuan (127.4 billion) in 2020, mark­ the home appliance industry is above 20,000 yuan on JD also growing demand” for dishwashers ing a year­on­year decline of 6.5 growing. E­commerce platforms soared 132 percent last year. Dryers and dryers in China last year, grow­ percent. Tmall and JD have become major have become the biggest dark horse ing 34 and 59 percent, respectively, But such figures still showcased selling platforms, and the indus­ in white goods market, with market as the company was the “strongest strong resilience amid the COVID­ try is no longer dominated by off­ demand expanding significantly non­Chinese home appliance man­ An attendee checks out air conditioners displayed at a 19 pandemic, the report said. Affect­ line retailing channels such as and retail sales increasing by 87.4 ufacturer in China”. booth during the 2021 Appliance & Electronics World Expo in ed by the contagion, the first quarter Gome and Suning, Hoogewerf percent year­on­year. In China, a “significant business Shanghai on March 24. PROVIDED TO CHINA DAILY of 2020 saw large­scale contraction said. Li Wenjie, who analyzes the home recovery” with high growth rates with a year­on­year decrease of 35.8 The report from the China Cen­ appliance market for JD, said the started in last May, more than com­ percent in sales of home appliances, ter for Information Industry Devel­ outbreak has changed consumer pensating for turnover losses during maker last month also ions to provide a healthy and com­ but then performance gradually opment also showed that the preferences and shopping habits. the first three months of 2020, BSH unveiled a roadmap for the next fortable air environment for the improved. In the fourth quarter, pandemic has reshaped consumer Chinese manufacturers have to allo­ said in a statement. phase of smart home development. family. online and offline markets fully lifestyles, thus promoting changes cate more resources to better exploit To meet growing demand for its Demonstrating its leadership in “At Haier, we have amassed over recovered, and retail sales reached in the types of home appliances emerging opportunities to increase products, Galanz, a Chinese home smart home scenarios, solutions 36 years of knowledge from serving the highest annual level at 294.1 bil­ available. sales and market share, he said. appliance maker, also built a new and technologies, Haier said it more than 180 million households, lion yuan. In 2020, the main 4K/8K smart At the same time, household plant in 50 days last year in Foshan, aims to deliver a better experience and gathered observations from It is also worth noting that last TVs, which feature large screens, appliances, such as dishwashers, Guangdong province. With four for users across clothing, food, tens of millions of connected devi­ year, e­commerce channels ultra­high definition and artificial handheld vacuum cleaners, hair­ new smart manufacturing lines, the housing, entertainment and trans­ ces. Our roadmap draws upon this accounted for more than 50 per­ intelligence, are becoming increas­ dressing and beauty products and base — which is capable of produc­ portation. insight and experience into the cent of retail sales of home applian­ ingly popular, as are healthy high­ massage chairs also recorded ing a microwave oven each 6.7 sec­ For example, Haier’s air condi­ needs of household users, in order ces for the first time in China. In end air conditioners, premium strong sales, which activated the onds — will have a production tioners will automatically activate a to usher in the future of connected 2020, online retail sales of home refrigerators with large capacity and otherwise sluggish home appliance capacity of 11 million units annually, sterilizing function based on smart home appliances,” said Wang appliances stood at 419.9 billion disinfection capabilities, and high­ market and also strengthened the Galanz said. detected levels of air pollution to Ye, vice­president of smart home yuan, marking a year­on­year end washing machines. Such a shift role of home appliances in improv­ To better pounce on the opportu­ remove seven types of common air business at the Haier Home Appli­ increase of 14.48 percent and an in preferences has led to changes in ing people’s sense of satisfaction, nities, Chinese home appliance pollutants, while releasing negative ance Industry Group.