There have been a lot of eyes on some of the bigger smartphone OEMs from China due to their incredible growth over the last couple of years. Companies like Huawei, LeEco and Xiaomi have become common names around the Android enthusiast community, and for good reason. We’re seeing an expansion coming from these companies that can only be compared to the likes of Samsung in certain cases.
Incidentally, this type of growth is difficult to maintain because at some point you just reach a saturation point. Xiaomi broke company sales records in 2014, and had originally projected to hit 100 million in 2015 before they were forced to lower those estimates. We’ve talked about LeEco’s financtial issues over the last couple of months now, and while Huawei is currently doing good, they too cannot expect to continue growing at the rate they have been.
So it makes sense that we’re now seeing reports that Chinese OEMs like Huawei, Xiaomi and LeEco are reducing the number of component orders for the first quarter of next year. The report says Xiaomi wasn’t able to perform as well as it had hoped during the third and fourth quarter of this year. So they’re expecting this trend to continue into the first quarter of 2017 and this has resulted in them ordering fewer components as well.
With LeEco being less aggressive than before, it just makes sense that they will be more conservative with their component orders than normal. This isn’t to say that these three smartphone OEMs aren’t making a profit anymore. Instead, it just seems to indicate that they’re unable to continue growing at the rate they have been lately. What will be interesting is seeing if these companies can keep their current customers, and maintain their current sales numbers, rather than losing them to other competitors in the region.
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