Part
01
of one
Part
01
Market share for tier two smartphone smart phone makers like www.poshmobile.com www.bluproducts.com etc.
Hello! Thanks for your question about the market share for Tier 2 smartphone makers. The short version is that the Tier 2 manufacturers that were ranked highest in global market share were Huawei 5.1% , Xiaomi 4.4%, ZTE 3.5%, Coolpad/Yulong 3.4%,
TCL/Alcatel 2.8%, and Vivo 2.7%. Whereas exclusive Tier 2 manufacturers still make up a minimal share of the overall smart phone market, the demand for unlocked phones in some regions including the US may contribute to rapid growth in this market. Below you will find a deep dive of my findings.
METHODOLOGY
In order to answer your question I compiled data from industry reports, market statistics, and relevant media sources, focusing on finding information both on which phone brands manufactured products for Tier 2 companies, as well as the market share of these brands.
I defined Tier 2 companies that operate at least partially by ‘peering’ or piggybacking of a Tier 1 network, rather than operating as an independent provider to provide voice and data services. It is also important to note that in my research I found that some brands manufactured phones for both Tier 1 and Tier 2 companies.
OVERVIEW
In a report on the top ten global phone manufacturers, Tier 1 companies Samsung, Apple, Lenova, and LG had a cumulative market share of 52.1%, whereas the top selling Tier 2 brands (Huawei, Xiami, ZTE, Coolpad/Yulong, TCL, Alcatel) each only had a market share ranging between 2.7-4.4%. Individually, the global market share of each of these companies was as follows:
*ZTE manufactures primarily for Tier 2, but has recently entered into manufacturing partnerships with Tier 1 companies
On a related note, market shares for top companies that primarily manufactured for Tier 1 companies were as follows:
OTHER TIER 2 MARKET DATA
Additionally, since you mentioned brand BLU, while this brand's global market shares was nominal and thus not mentioned in reports of the highest selling Tier 2 phones, I was able to find a source that stated that BLU sold 4.1 million units last year. Using the given data, that would equate to an approximately 1.1% market share.
OTHER RELEVANT INFORMATION
One of the most relevant pieces of information I found in my research to your query relates to the rapid growth of unlocked smartphones (generally available via Tier 2 service providers) in the US. This market grew 43% in 2016, which may have led to the rapid growth of some of these companies, like BLU for example which had just 70,000 sales in 2009.
However, it was still noted that in the US specifically, Tier 2 is still a very small percentage of the market, which mostly relates to Tier 1 companies requiring a contract that allows them to subsidize the cost of the phone over a long term pay period, whereas products for Tier 2 companies require an up front purchase. This may be why Tier 2 companies are only comprised of 20% smartphone users.
It is again also important to note that many brands manufacture phones for both Tier 1 and Tier 2 companies, with certain models available depending on carrier. ZTE for example was noted to originally be a Tier 2 provider to regional carriers, but in an attempt to increase their revenue has partnered with Verizon as well as aiming at other Tier 1 companies.
To wrap it up, Tier 2 manufacturers still comprise a small market share, but the demand for Tier 2 smart phones may grow rapidly. Thanks for using Wonder! Please let us know if we can help with anything else!