(Bloomberg) — China’s No. 1 smartphone maker Vivo wants to increase sales from overseas markets like Southeast Asia to as much as 70% of revenue in two years, accelerating its global push as the world’s biggest handset market saturates.
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The closely held company already gets more than half of its sales from outside China, Chief Operating Officer Hu Baishan said in an interview on the sidelines of the Boao Asia forum in the tropical Chinese island of Hainan. That will grow to 60% next year and about 70% in 2027, Hu said.
“For us, the future definitely lies in overseas markets,” Hu told Bloomberg Television.
At Boao, Vivo showcased its newest flagship smartphone, the Vivo X200 Ultra, which will start selling next month. It announced a virtual-reality headset, whose prototype will be ready for testing in August, and a robotics research lab to expand in the field of artificial intelligence.
The company grew its shipments in China by more than 10% in 2024, beating Apple Inc. and homegrown rivals Huawei Technologies Co. and Xiaomi Corp. to the top spot, according to research firm IDC. The brands are locked in red-hot competition as replacement demand drives sales in the oversupplied market.
Addressing China’s weak consumer confidence, Hu said people are holding onto gadgets longer before swapping for a new one. The government issued vouchers and subsidies to spur demand, but their impact was short-lived, Hu said.
“Subsidies merely unlocked replacement demand earlier than usual,” Hu said. “It will not turn the market.”
In India, Vivo’s biggest overseas market, the company will focus on selling more high-end gadgets priced at above $600, Hu said. In markets including the Philippines and Indonesia it’s still trying to expand volumes, he said. Vivo has gained share in Southeast Asia, holding the No. 1 position in Indonesia and second place in Malaysia, according to consultancy Canalys.
Hu said he doesn’t set specific growth targets for each individual market because those are hard to gauge. “Growth is the priority for our overseas team,” he said. “If there’s no growth, there will be problems.”
Vivo isn’t ready for developed markets including the US and Western Europe, where high-end gadgets and sales through telecom operators dominate. Hu said the company may consider entering those markets in three to five years though, leveraging newer gadgets like VR goggles.
