It also demonstrates the increasing consolidation in the Chinese smartphone market, as the top three players took only 42% of market share during the same period previous year.
The largest smartphone market in the world is still growing, according to the report from Canalys, with shipments increasing by 9% YoY this past quarter (estimates of 114 million units total).
Huawei increased phone shipments by 25% year-on-year to nearly 21 million units during the first three months of the year, beating former title holder Oppo's 20 million, according to a report by market research firm Canalys.
Meanwhile, Vivo rounds up the Top 3 for Q1 2017, with 15% market share and 17 million units shipped.
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The research reveals that Huawei shipped almost 21 million units this quarter, after being second to Oppo for the last two quarters. But he highlighted a clear indication that the market is consolidating. Many major smartphone vendors like Samsung and Apple are hoping it proves to be the next major drive for growth in the category while, simultaneously, local players within the Chinese market are hoping to use it as a springboard for their own global expansion.
"China's smartphone market continues to grow, with shipments increasing by over 9% year on year this quarter", said Canalys Research Analyst Lucio Chen. Xiaomi, which was placed third in Q1 2016, has now dropped to the fifth place, behind Apple.
Interestingly, Huawei, Oppo and Vivo together now command over 50 smartphone market share in the country. "The top three vendors are pulling away at the head of the market, accounting for more than 50% of shipments for the first time this quarter".
Canalys analyst Mo Jia thinks that the scrappy domestic star should change from a value-oriented strategy to something more "aspirational". He added that Xiaomi's move up the value chain in China will be an uphill struggle as both Oppo and Vivo are way ahead and Huawei's plans to push investment in its offline channel in 2017.
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