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Vivo

Vivo: The Dominators of Global Affordable Smartphone Industry

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The smartphone is one of the most innovative discoveries of humankind. It won’t be wrong if we call a smartphone a mini-computer, as it can do almost everything a computer can do. Today, from entertainment to business and from connecting with people to studying online, everything is possible through this small and handy gadget. Though smartphones could only be a thing for the Rich, due the companies like Vivo, people from every category have been able to get their hands on them. The company is known for its feature-rich yet affordable smartphones and is one of the most loved smartphone manufacturing companies across the globe.

A Brief Introduction

Vivo is a Chinese Android smartphone manufacturing company that is a subsidiary of BBK Electronics and was founded by Shen Wei in 2009. It is the sister company of Oppo and OnePlus. The company’s headquarter is located in Dongguan, Guangdong, and it is one of the leading smartphone companies in the world that manufactures affordable to mid-range smartphones. Apart from smartphones, Vivo also is the mass producer of smartphone accessories, software, and online services. Vivo’s mobile applications are widely available on its dedicated V-Appstore, and its smartphones also run on the Funtouch OS.

The Back Story of Vivo

Vivo, as mentioned earlier, is a subsidiary of BBK electronics, which came into being with the emergence of smartphone technology around the world in 2009. The company continued to serve its Chinese audience for around 3-4 years of its founding, and in 2014, by entering Thailand for the first time, it started to expand overseas. The company offered innovative designs and features incorporated into its smartphones that made Vivo smartphones quite popular among its global audience in no time.

Vivo
Image Source: ohsem.me

By 2015, the company had reached major Asian countries like India, Indonesia, Malaysia, Myanmar, Philippines, and Vietnam, etc. The same year, Vivo had sold 45 million units of smartphones worldwide, whereas it was producing 60 million pieces annually. In the year 2017, Vivo also started its expansion in the European countries starting from Russia.

Vivo is credited for bringing the first slimmest smartphone in 2014 and also for becoming the first smartphone company to incorporate a Hi-Fi chip into a smartphone (the Vivo X1) in 2012. The company also entered the U.S. market with the brand name BLU. In 2019, the company had become the second-best smartphone company in India. Apart from smartphone manufacturing, the company is also one of the sponsors of the Indian Premier League (IPL), UEFA, India’s Pro Kabaddi, and FIFA.

The Key People at Vivo

Shen Wei is credited as the founder of Vivo, who is also the disciple of the founder of BBK Electronics, Duan Yongping. From the time of the founding of Vivo, Wei has been serving the company as its CEO as well as the President. Before serving as the CEO of Vivo, Shen was working for BBK Electronics. According to Duan, it was never his plan to start a dedicated smartphone company, but after the demand for affordable smartphones started, BBK had to enter the competition. Today, BBK trades as the smartphone seller with its subsidiaries Vivo, Realme, OnePlus, and Oppo.

The Company Today

Vivo has its dedicated R&D centers established in Dongguan, Chongqing, Shenzhen, and Nanjing, and around 3,000 engineers are working at those centers. Apart from that,  around 10,000 employees are serving the company globally and till now, Vivo is actively providing its services in over 100 countries. Vivo has continued to follow its ritual to introduce new smartphone models every year, such that it remains relevant in the changing smartphone market. The company with its innovation grown to become a leading name in the smartphone industry and is one major contributor to the growth of its parent company BBK Electronics, too.

QoQ Growth

Global Production of Smartphones Surges Ahead with Highest QoQ Growth

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The global smartphone industry had taken quite a hit as a result of the COVID-19 pandemic. However, the industry seems to be back on its feet, owing to new releases and a surge in demand. The global production of smartphones has shown a marked increase of 20% on quarter-on-quarter growth. The increase takes the production to 336 million units in 2020’s third quarter as per market research done by TrendForce. In this article, we will take a closer look at this report and what it means for smartphone users around the world.

QoQ Growth

The report highlights how this is the highest QoQ reported in recent years, despite the slowdown caused by the global pandemic. TrendForce also noted that the comparisons of various QoQ clearly outline a recovery from the plummet in demand caused by COVID-19. However, even with such a surge in production, only Xiaomi and Samsung were able to increase their market share this quarter out of the top six.

Companies Moving Ahead

As per TrendForce’s data, Samsung experienced a QoQ growth of 42% producing 78 million units last quarter. This massive growth helped the smartphone giant retain its global top spot. However, the research predicts that Samsung will drop its production to 62 million, indicating a drop of 16 million units by the end of the holiday season. As the company faces stiff competition from the Apple iPhone 12 series, after the holiday stockpiling in Europe and North America, there will be a reduction in production.

Coming in second is Oppo, with a 64% QoQ increase that saw the company produce 45 million units in the third quarter. However, this figure also includes devices from the Realme, OnePlus, and Oppo lines, leading to a higher number. Following close behind was Xiaomi which experienced a 51% QoQ boost leading to the production of 44.5 million units. Due to the comparative figures, TrendForce recorded that both Xiaomi and Oppo shares the second spot.

Other Companies in the Mix

Oppo, Vivo, and Xiaomi have all benefitted from Huawei’s loss of market share. Huawei has had to deal with American sanctions that have severely impacted its production and demand. Both Oppo and Xiaomi are planning to boost their production in the fourth quarter. Estimated production volumes for Oppo and Xiaomi include 47 million and 46 million units respectively. 

QoQ Growth
Image Source: nextbigbrand.in

Meanwhile, Apple dropped to the fourth position on the chart due to a QoQ growth of a meager 2%. The American giant produced only 42 million units in the third quarter, and this drop is attributed to the delay in launching the iPhone 12. Researchers believe that the launch of the 12 series will reinstate Apple’s high position on global charts, with production volume estimates being as high as 74 million units in the fourth quarter.

Bottom End of the Chart

Mirroring Apple’s position was Huawei, which produced 42 million units in the third quarter, on par with Apple. However, the company witnessed a QoQ decline as large as 19%, which experts believe will fall to a whopping 30% by the end of the fourth quarter. As a result, their production volume is expected to shrink to 30 million units. Vivo came in sixth with a QoQ increase of 13%, producing 30 million units in the third quarter. However, experts believe that the company will expand production to 35 million units in the fourth quarter, indicating a higher QoQ in the future.

Political Tensions

TrendForce’s experts noted that the ongoing India-China border dispute will put even more pressure on companies like Xiaomi, Vivo, and Oppo. As Indians take a more patriotic and nationalist approach to production and purchase, these companies will face hurdles in their sales efforts. India remains a primary foreign market for all these manufacturers, and they may experience a loss of market share if these sentiments are to continue. The trio of brands enjoy a robust local supply chain in India and have a strong brand identity. However, if the dispute drags on Indian buyers might gravitate towards their competitors, marking a decline in sales for them.

TrendForce also noted that the global production of smartphones for 2020, experienced a YoY drop of 11%. This year, the total production volume touched 1.25 billion units, and this is expected to grow to 1.36 billion units in 2021. Therefore, smartphone manufacturers can expect a surge in demand in the coming year, helping them recover fully from the lull caused by the COVID-19 pandemic this year.