Unmatched market share
In January 2020, in terms of the number of devices sold, the Vietnamese smartphone market witnessed a strong rise of Vsmart and Realme, while there was a slight decrease of Apple, Xiaomi, Vivo. This has led to market shares of almost equal firms, something unheard of before.
Samsung and Oppo have firmly held the number 1 and No. 2 smartphone markets in Vietnam and far outstripped rivals for many years. Meanwhile, the No. 3 market position today is held by Apple, though in recent months Apple has been under pressure from Xiaomi. The two companies interchanged No. 3 position for each stage, but overall Apple has temporarily ranked No. 3 but the gap is extremely low compared to Xiaomi.
Smartphone market share is closer than ever. Photo: Hai Dang
In January 2020, Xiaomi held the No. 3 position in the market, but in the previous month (December 2019), Apple took the position.
In January 2020, according to GfK data, Xiaomi had about 7.85% of Vietnam’s smartphone market share, Apple had 7.79%. Next to Apple is Vsmart, the smartphone brand of billionaire Pham Nhat Vuong, with 7.71% – only losing to Apple about 1 thousand units (out of more than one hundred thousand units sold in the month).
In the next position, Vivo has 7.37% market share, Realme has 6.4%.
Which company can surpass Apple?
IPhone phones on display in a store. Photo: Hai Dang
Looking at the data, it can be seen that the companies are less than 1% of the market, the gap is very fragile, so Apple’s No. 3 position has never been so threatened in the past two years.
Previously, in the last months of 2019, Xiaomi surpassed Apple for 3 consecutive months, sometimes reaching a market share of more than 10%, far behind Apple. However, for the whole of 2019, or for 12 months from the time of statistics, Apple is still better than Xiaomi.
If you look back on 2019, Xiaomi is Apple’s biggest rival and most likely to take over the US company. Xiaomi has a steady stream of smartphones covering the low- and mid-range segments, which are most commonly purchased. This company also has a stable development time in Vietnam since joining the market till now.
If you look from the last 2 months of 2019 and January 202020, it can be seen that the brand Vsmart has developed quite strongly. The brand jumped from 4-5% in the market share, jumped to 4-5%, then reached the 7.71% mark as in January. To gain this market share, Vsmart halved the price of Vsmart Live a few months ago, then went down 2 million dong on the new Active 3.
If this momentum is maintained, Vingroup’s smartphone company can gain good market share and surpass Apple.
Another recent emerging brand is Vivo also achieved a good market share, 7.37%. Vivo had a good start in Vietnam with a well-organized business strategy, but the personnel fluctuations made it not really break up. With changes in the middle of the year 2019, the company has developed stronger steps, promising better steps ahead.
One “dark horse” can not fail to mention is Realme, a trademark of Oppo. Inheriting Oppo’s business strategy, warranty system and distribution channels, Realme quickly gained good market share in Vietnam. However, the market share of this brand has changed steadily every month. However, in January 2020, the brand also came close to the No. 3 position with 6.4% market share.
Overall, Xiaomi is still a fairly sustainable developer with a platform to surpass Apple in Vietnam. Vsmart is the unknown that takes time to see how far they go. Meanwhile, Vivo and Realme are also capable names.
However, the smartphone market is saturated, the amount of purchase does not increase. As a result, firms take most of each other’s market share and do not develop more markets, so if one firm goes up, the other companies’ market share will decrease.