Entry-Level Smartphone Market Sees a Resurgence: Redmi Reigns, OPPO Rises Strongly, and Transsion Emerges as a Dark Horse

Entry-Level Smartphone Market Sees a Resurgence: Redmi Reigns, OPPO Rises Strongly, and Transsion Emerges as a Dark HorseIt seems like the prices of smartphones around me have been steadily increasing. A decade ago, the domestic phone market was dominated by budget-friendly phones, with players like Redmi, Honor, Coolpad, LeTV, 360, and other internet brands battling it out to capture market share with their affordable hundred-yuan phones

Entry-Level Smartphone Market Sees a Resurgence: Redmi Reigns, OPPO Rises Strongly, and Transsion Emerges as a Dark Horse

It seems like the prices of smartphones around me have been steadily increasing. A decade ago, the domestic phone market was dominated by budget-friendly phones, with players like Redmi, Honor, Coolpad, LeTV, 360, and other internet brands battling it out to capture market share with their affordable hundred-yuan phones. Four years ago, as the domestic smartphone market reached saturation, established brands moved towards the high-end market, with mid-to-high-end phones priced over four thousand yuan emerging rapidly. Today, after a decade, entry-level smartphones have become a rarity.

Leaving aside the niche brands that have disappeared into the annals of history, Redmi, the traditional king of the budget market, hasn't specifically updated its entry-level phone lineup for some time. The traditional numeric series, particularly the Redmi 13C, has remained stagnant for a while, leading many to question the possibility of new releases.

However, the situation seems slightly different overseas. Recently, market research firm Counterpoint Research published a blog post reporting that emerging markets drove the global sales of budget smartphones to exceed 100 million units in the second quarter of 2024, marking a year-on-year increase of over 10% and accounting for 37% of global smartphone sales. In contrast, the overall global smartphone market experienced a 6% year-on-year growth during the same period, reaching its highest year-on-year growth since the second quarter of 2021.

Interestingly, this growth rate was achieved despite a near-halving of the number of entry-level models available in the market. This indicates a higher concentration of sales, with the top 10 models capturing nearly a quarter of the market share. So, what are these top 10 models? Read on to find out.

Redmi Takes the Crown, OPPO Claims Three Spots

In a mature consumer electronics market, the strong tend to get stronger, a common trend. For instance, in the PC market, the top six brands globally have remained virtually unchanged over the past decade. The top three are consistently Lenovo, HP, and Dell, while the remaining three positions are contested by Apple, ASUS, and Acer. In essence, as long as the external environment and technology don't undergo significant changes, such a market will continue to develop stably.

In fact, the current entry-level market is also evolving according to this trend.

In Counterpoint Research's Top 10 Bestselling Entry-Level Smartphones in Q2 2024 report, Xiaomi, Samsung, and OPPO each occupy three positions, while the remaining slot is taken by Transsion. There's no surprise or unexpected presence, all are the industry's leading players.

As one of the fastest-growing top 5 smartphone players globally, Xiaomi's sub-brand Redmi has delivered impressive performance in the entry-level market. The Redmi 13C 4G edition, with a 4.1% market share, emerged as the best-selling entry-level smartphone globally in the quarter, a well-deserved victory.

Launched last November, this phone, priced at 108.44 euros (equivalent to 850 yuan), offers features like the MediaTek Helio G85 processor, a 6.74-inch 90Hz LCD waterdrop screen, making it a remarkable entry-level phone for its price point, especially in the overseas market. Furthermore, the Redmi 13C 5G edition, launched in December of the same year, successfully secured the fourth spot on the list with a 2.4% market share.

This model can be considered a global version of the domestic Redmi 13C, equipped with the MediaTek Dimensity 6100+ processor and priced around 143 euros (equivalent to 1122 yuan). It's the only 5G model on the list and truly embodies the motto, "Making technology enjoyable for everyone."

Redmi is currently on a roll, but to maintain its global leadership, it needs to contend with intense competition from domestic giants like OPPO, vivo, and Honor, all actively expanding their overseas presence. This is not just a battle of technology and innovation but a struggle for brand influence and market strategy.

OPPO, which has been consistently expanding into overseas markets in recent years, also performed exceptionally well in this ranking, with three of its products making the bestseller list, achieving a 4.3% market share.

Interestingly, although these three models share similar aesthetics and core configurations, they differ in their peripheral features. The standout OPPO A38 boasts a 50MP main camera, a 90Hz LCD screen, and even supports 33W SuperVOOC fast charging. Besides these similar models, OPPO has also launched products like the OPPO Reno12F 4G and OPPO A80 targeting the mid-to-low-end market overseas, aiming to steadily enhance its brand appeal in these markets.

Samsung Performs Well, Transsion Creates a Surprise

In terms of market share, Samsung remains the undisputed leader. Though it has been classified as "Others" in the domestic market, Samsung's brand influence is still top-tier globally, forming its core base. Even in the entry-level market, Samsung's diverse product portfolio allows it to hold a significant position.

Last year, Samsung introduced the Galaxy A05 and A15 series of entry-level phones. While the Galaxy A05 and Galaxy A15 4G models use MediaTek 4G processors, the similarly popular Galaxy A05s employs the Snapdragon 680 processor, a chip from six years ago. A new phone utilizing a six-year-old processor still making the bestseller list represents a peculiar synchronicity between domestic and international markets.

Worth noting is that the Samsung Galaxy A15 5G, which, like the Redmi 13C 5G, features the Dimensity 6100 processor, didn't make it to this list due to its pricing. However, it secured the fourth position as one of the best-selling phones globally in the second quarter of this year, with a sales share of 2.0%.

Rumours suggest that Samsung is internally testing the Galaxy A16, which is expected to be available only in a 5G version. Combined with Counterpoint Research's findings, the fact that almost a quarter of entry-level phones are now embracing 5G networks, it's clear that the transition to a full-fledged 5G era is imminent.

As for the brand that surprised me the most, it has to be Transsion. Being practically invisible in the domestic market, Transsion's current achievements are solely based on its overseas market performance. Its holistic overseas expansion strategy and brand influence are unparalleled among Chinese smartphone brands. This year, it has climbed to the top 5 global smartphone players with a 9% sales share.

A significant portion of this sales volume stems from entry-level phones. After all, Transsion continues to reign in the sub-$100 phone market in many developing countries.

The Transsion Spark Go 2024 4G, which made it to the list this time, is one of their standout products. Although its configuration isn't significantly different from other 4G entry-level phones, its price tag of just 6899 rupees makes it a priority choice for those on a tight budget. Of course, Transsion is not just limited to budget-friendly and feature phones anymore. They have launched high-end Phantom VFold and VFlip foldable phones in India, which, though not likely to rival Xiaomi in the short term, have the potential to be future dark horses.

Yes, Entry-Level Phones Still Matter

In a way, today's entry-level phones and mainstream phones can be viewed as two completely isolated systems. The selling points that mainstream phone users have become accustomed to, such as 5G networks, high-refresh-rate screens, computational photography, and high-speed fast charging, are still rare in the entry-level market. Examining these bestselling models, they hardly boast any noteworthy features.

However, the entry-level market is experiencing tangible growth, even exceeding the growth rate of the overall market. I believe this phenomenon stems from two main reasons. First, as statistical agencies have pointed out, emerging markets like India and Africa continue to have a rising demand for entry-level phones. Consumers in these regions drive up overall sales due to their preference for high-value-for-money phones. Second, the combination of economic pressure and technological accessibility plays a crucial role. With global economic uncertainty increasing, many consumers are choosing more affordable phones, and the gradual trickle-down of features like high-refresh-rate screens, large batteries, and 5G networks have made entry-level phones meet their usage standards, leading to a natural consumer downgrade.

While pursuing high-specification flagship phones, we shouldn't overlook the fact that there are still many people around the world who need entry-level phones. Students need budget-friendly but socially and entertainment-capable phones, people working away from home need phones that can support all-day communication and withstand loss or damage without breaking the bank, and senior citizens need phones that can keep up with societal changes and allow them to easily connect with their children even if forgetting to charge. The ability to cater to