Updated: Aug 19, 2021
Written by Ashley Ang
For the first time, Vivo has grown to become the smartphone market leader in Indonesia. Not only that, but Vivo and Xiaomi were the only companies in the top 5 to report year-on-year (YoY) growths despite worldwide smartphone shipments decreasing by 11.7% YoY in Q1 2020.
In the first quarter of 2020, Vivo achieved a shipment volume of 24.8 million units and ranked at the fifth spot behind Samsung, Huawei, Apple and Xiaomi with a 9% market share. Vivo, however, has the largest annual growth rate amongst the five at 7% YoY market growth in Q1 2020 while Xiaomi came in second with a 6.1% YoY growth.
As seen from the table above, Huawei’s YoY growth also contracted by 17.1%, undoubtedly because of the ban that was implemented last year. But the biggest contraction is Samsung, shipping 13.6 million units fewer than in Q1 2019, with a 18.9% decline in YoY growth.
In Indonesia, Vivo reported its highest shipment volume in Q1 2020. With Indonesian consumers being some of the most price-conscious around, Vivo’s strategy to focus on marketing and promotions around low and mid-range smartphones seems to have paid off. Not to be deterred by the COVID-19 pandemic, the company has adapted by enhancing e-commerce channels and introducing Home Delivery Service in the country.
India is another growing market for both brands. With a YoY growth of 63.3% in Q1 2020, Vivo achieved second place behind Xiaomi in terms of shipments and a market share of 21% in this quarter.
With the smartphone market looking to take a major downturn this year, it’ll definitely be interesting to see how the companies innovate to stay ahead of the competition.