Xiaomi handset shipments slump by 38 percent in China

Chinese rising star Xiaomi has lost its luster, after its smartphone shipments were eaten up by local rivals during Q2.

Xiaomi shipments tumbled by 38 percent in China for the quarter ended June 30 compared to the same period last year, as Huawei, Oppo, and Vivo strengthened their positions in China, according to a research note released by International Data Corp (IDC) on Monday.

The Chinese budget phone maker shipped a total of 10.5 million smartphones in the second quarter, down from 17.1 million during the same period last year. IDC said Xiaomi had slipped to fourth place after leading the market a year earlier.

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IDC Quarterly Mobile Phone Tracker

Huawei, Oppo, and Vivo's phone shipments in the past quarter have increased by 15.2 percent, 124.1 percent, and 74.7 percent, respectively. The three brands cornered 47 percent of the Chinese smartphone market in the second quarter of this year, up from the 43 percent registered for 2015 and 45 percent for the first quarter of 2016. IDC said the market continues to consolidate further as the share of the top three vendors keeps rising.

Apple's shipments to China tumbled by 32 percent in the second quarter, down to fifth place from third place last year. IDC said the iPhone SE was not a hit in China, as consumers prefer larger-sized phones and may be holding out pending new iPhone announcements.