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Gionee Posted Strong Growth in Revenue / ASP in Q2 2017

by Yiwen Wu | Sep 11, 2017

Gionee posted a good quarter for its smartphone business with strong growth in revenue. Although its volume growth has been softened, the Chinese vendor managed to improve its ASP via the differentiated product portfolio and aggressive branding initiatives. With a +3% annual growth rate by volume, Gionee solidified the 10th position in global smartphone market.

Gionee continued its product-driven strategy by launching M9s Plus, S10, and A1 Lite this quarter. M9s Plus is a premium model and differentiated via its AMOLED display, long battery life, and security features. S10 is also a premium model that competes via its enhanced camera function: dual camera in the front (20MP + 8MP) + dual camera in the back (16MP+8MP). A1 Lite is middle-end model for overseas market with long battery life and enhanced selfie experience as the key selling points. All these efforts indicate the vendor’s ambition and capability for product differentiation and innovation.

Gionee is now betting big on the bezel-less display. Gionee is reportedly will unveil its first bezel-less smartphone in Thailand this month. Furthermore, all Gionee’s new models with full retail price of above RMB1499 will come with bezel-less display from this October. Display is now leading the innovation in smartphone industry. Gionee’s  relatively strong R&D capability, and scaled up volumes make the vendor well-positioned to ride the wave of bezel-less display smartphones in following quarters. However, differentiators and supply chain management still remain top challenges ahead.

Our latest report Q2’ 17 : Gionee : Strong Growth in Revenue / ASP is published. WSS client can read the full analysis and forecast here.

Gionee M7

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