Here’s a surprise for you – Xiaomi and Lenovo have slipped from the world’s top five smartphone makers, according to a study by IDC. The brands, which previously occupied fourth and fifth place respectively have been booted out of the top five for Q1 2016. Taking their place? Oppo and Vivo.

It’s fair to say that those aren’t the two names you’d pick to surge ahead of Xiaomi and Lenovo. Both brands have released some excellent phones over the last year and have gained increasing momentum and credibility amongst consumers. So what’s gone so wrong for the brands? We’ll let IDC explain:

The biggest change to the market, however, was the addition of lesser-known Chinese brands OPPO and vivo, which pushed out previous fourth and fifth place players Lenovo and Xiaomi, respectively. As the China market matures, the appetite for smartphones has slowed dramatically as the explosion of uptake has passed its peak. In 2013, China’s year-over-year shipment growth was 62.5%; by 2015, it had dropped to 2.5%. Conversely, the average selling price (ASP) for a smartphone in China rose from US$207 in 2013 to US$257 in 2015.

“Along China’s maturing smartphone adoption curve, the companies most aligned with growth are those with products serving increasingly sophisticated consumers. Lenovo benefited with ASPs below US$150 in 2013, and Xiaomi picked up the mantle with ASPs below US$200 in 2014 and 2015. Now Huawei, OPPO, and vivo, which play mainly in the sub-US$250 range, are positioned for a strong 2016,” said Melissa Chau, senior research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker. “These new vendors would be well-advised not to rest on their laurels though, as this dynamic smartphone landscape has shown to even cult brands like Xiaomi that customer loyalty is difficult to consistently maintain.”

IDC q1

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