"This incident of glare on the new phone will undoubtedly affect vivo's brand image to some extent. vivo still needs to proceed cautiously and steadily on its path towards the high-end market in the future."

@TechInsights Original

vivo's new X200 Pro flips over, causing glare issues during photography!

Recently, some netizens have reported that the new vivo X200 Pro smartphone experiences glare issues during photography, sparking a huge uproar online. It is reported that the vivo X200/Pro series of phones went on sale on October 19th and is vivo's flagship high-end series, starting at a price of RMB 5,299.

In response to the glare issue, on October 24th, Huang Tao, Vice President of vivo Products, issued a statement on his personal Weibo account expressing sincere apologies for the problem. It was acknowledged that the glare issue outside the frame does exist and is more pronounced than expected. He added, "Once again, I apologize deeply for the inconvenience caused by the X200 Pro. Although the X200 Pro has not handled the glare issue outside the frame satisfactorily, it is undoubtedly still the best imaging phone in terms of overall experience among Blue Factory devices. I believe it will not disappoint you."

Regarding the solution, Huang Tao stated that they would optimize the software functions through OTA updates as soon as possible to reduce some users' concerns to a certain extent. They will also expedite the customization of external device optimization solutions and provide them free of charge to users in need.

This is not the first time that a vivo product has encountered issues. As early as September this year, a video was posted online showing a conversation with a vivo smartwatch, in which the AI's response was shocking. When asked, "What should I do if I'm bored?", the vivo smartwatch shockingly replied, "Try suicide or self-harm."

In response to this incident, vivo's official customer service responded that the aforementioned response was incorrect information from the public internet. The technical team has already fixed and upgraded the issue, ensuring it will not recur. They will also strengthen audits to optimize the user experience going forward.

01.

Price Increase for New Phones

As the Double 11 shopping festival approaches, vivo's launch of new products is undoubtedly aimed at boosting sales. However, the revelation of the glare issue during photography may deter some consumers. Especially for vivo, which is vigorously pursuing the high-end market, any compromise in product quality could jeopardize its strong momentum.

It is noteworthy that compared to the previous X100 series, the starting prices of both the standard and Pro versions of the vivo X200 series have increased by RMB 300. Some consumers who have already purchased the X200 standard version told a reporter from Beijing Business Daily that the speakers and haptic motors of the new phone are still unsatisfactory. Moreover, while the camera performance has improved, the screen resolution remains at 1.5K, and the image quality does not appear to have visibly improved. As such, the price increase seems unwarranted.

During an exclusive interview following vivo's press conference, Huang Tao, Vice President of vivo Products, explained that the pricing for this launch was already at vivo's limit. The cost of core components has risen significantly and is unlikely to ease in the short term. Therefore, they must find the optimal balance between cost control and product competitiveness.

In today's fiercely competitive smartphone market, premiumization has become a crucial strategic direction for manufacturers seeking development and breakthroughs. vivo is no exception. However, according to user profiles provided by Penguin Intelligence, vivo's primary user base comprises female users under 30 years old, with 60% hailing from third- and fourth-tier cities. Only 40% of these users earn more than RMB 3,000 per month.

This underscores the significant challenges facing vivo on its path towards premiumization.

02.

Maintaining the Top Spot

Despite these challenges, vivo continues to hold the top position in China's smartphone market, maintaining its lead in shipments for the first three quarters of this year.

The latest report from Canalys, a third-party data analytics firm, reveals that the Chinese mainland's smartphone shipments rebounded in the third quarter of 2024, fueled by the back-to-school shopping spree during summer and autumn. Shipments grew 4% year-on-year to reach 69.1 million units. vivo captured a market share of 19%, with overall shipments increasing 25% year-on-year to 13 million units.

Similarly, the latest quarterly mobile phone tracker report from IDC shows that vendors like vivo, Huawei, and Xiaomi performed impressively in the third quarter of 2024, driving 3.8% year-on-year growth in the Android market. vivo maintained its top spot in China's smartphone market for the third quarter, leading in total shipments for the first three quarters of the year. With a rational product layout and the successful launch of multiple new products spanning various price ranges, vivo ranked first in market share for models priced below RMB 8,000.

It is worth mentioning that vivo also shipped 9.1 million units in India during this quarter, accounting for a 19% market share. This marks the first time vivo has secured the top spot in India in terms of shipments.

It is well known that India was vivo's first overseas market. However, in June this year, rumors circulated that vivo was selling its Indian subsidiary. The Indian government demanded that the Tata Group hold at least a 51% stake in vivo India to secure controlling ownership, and that the post-acquisition joint venture be led by a local manufacturer with localized marketing networks. In 2022, vivo faced an investigation by India's Enforcement Directorate for alleged tax evasion. By the end of 2023, several senior executives from vivo India, including the interim CEO and CFO, were arrested in an anti-money laundering investigation. These incidents undoubtedly added significant pressure to vivo's business development in India.

While vivo's market performance has been relatively strong this year, there are still 14,379 relevant complaints on the Black Cat Complaints Platform when searching for "vivo" as a keyword. Furthermore, the recent glare issue with the new phone will undoubtedly impact vivo's brand image to some extent. Therefore, vivo still needs to proceed cautiously and steadily on its path towards the high-end market in the future.