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upstart [ˈʌpstɑ:t]
n. 暴发户,新贵; 傲慢自负的人;
adj. 暴富的; 自命不凡的,傲慢无礼的;
vi. 突然跳起,突然发起;
[例句]Many prefer a familiar authority figure to a young upstart.
很多人都更愿意跟自己熟悉的权威人物打交道,而不是一个年纪轻轻却自命不凡的家伙。
How OPPO and Vivo are beating Apple, Xiaomi and the gang
gang [gæŋ]
n. 帮派,团体; 盗贼等的)一帮; (工具,机械等的) 一套; 〈美俚〉棒球队;
vt. 使结成一帮; 成群地袭击;
vi. 结伙行动;
[例句]During the fight with a rival gang he lashed out with his flick knife
在与敌对帮派的打斗中,他挥舞着弹簧折刀一通猛刺。
[1] DONGGUAN, a southerly Chinese city near Hong Kong, is better known for cranking out cheap trinkets than for producing high-end equipment of any kind. And yet, amid the grit and grime is a gleaming low-rise factory producing some 50m smartphones a year for OPPO, a firm started by China’s BBK Electronics but which is now run independently.
southerly [ˈsʌðəli]
adj. 向南; (向)南的(地) ; (指风)从南面来的(地) ;
n. 南风;
[例句]We set off in a southerly direction.
我们向南出发了。
crank [kræŋk]
n. [机] 曲柄; 妙语,奇想; 〈美俚〉想法古怪的人; 〈口〉脾气乖戾的人;
vt. 转动曲柄移动; 使弯曲; 给…装上用于转动的曲柄; 转动曲柄开动(引擎);
adj. 奇异的,古怪的; 易怒的;
[例句]The Prime Minister called Councillor Marshall 'a crank'
首相称马歇尔议员为“怪人”。
trinket [ˈtrɪŋkɪt]
n. 小装饰品; 小件饰物; 无价值的琐细杂物; 小玩意儿;
[例句]A great life lost so that someone far away can have a trinket on their mantelpiece.
一个伟大的生命逝去了,远方某人的壁炉上可以多个饰品了。
amid [əˈmɪd]
prep. (表示位置) 在…中间; (表示环境) 处于…环境中; 由于存在…情况; (表示让步) 尽管有…的情况;
[例句]Children were changing classrooms amid laughter and shouts.
孩子们在欢笑声和喊叫声中换教室。
grit [grɪt]
n. 勇气; 细沙,沙砾; <口>刚毅,坚韧;
vt. 发出轧轧声; 轧,研磨; 以沙砾覆盖(某物),撒沙砾于; 咬紧牙关;
[例句]He felt tiny bits of grit and sand peppering his knees.
他感到细小的沙砾不断打在膝盖上。
grime [graɪm]
n. 煤尘; 污垢,污点;
vt. 使污秽; 使…弄脏;
[例句]Kelly got the grime off his hands before rejoining her in the kitchen.
凯利洗去手上的污垢,又回到厨房来帮她的忙。
gleaming [ˈgli:mɪŋ]
adj. 闪闪发光的;
v. (使) 闪烁, (使)闪亮( gleam的现在分词 );
[例句]'This ought to be fun,' he told Alex, eyes gleaming.
“这应该会很有趣!”他对亚历克斯说,两眼闪闪发光。长难句:
Amid the grit and grime is a gleaming low-rise factory producing some 50m smartphones a year for OPPO, a firm started by China’s BBK Electronics but which is now run independently.
句子架构分析
Amid the grit and grime:是一个介词短语,介词短语永远是修饰语,不能作主语,继续往后找主语
is:是系动词,可以直接作句子的谓语,我们会发现,还没有找到主语就已经先遇到了谓语动词。那什么情况下会谓语先于主语出现呢?只有倒装结构会这样,所以确定这个句子是一个倒装句。那么再思考倒装结构的主语会放在哪里呢?对,倒装结构的主语是紧跟谓语之后的名词。这里紧跟谓语之后的名词是:a gleaming low-rise factory
a gleaming low-rise factory:是句子的主语
句子的主干:a gleaming low-rise factory is amid the grit and grime.
而严格书面语言中倒装结构出现往往是主语后的修饰语太长,为了避免头重脚轻的,所以接下来我们一起看看主语后面的修饰语是怎样的:
producing some 50m smartphones a year for OPPO:这是一个分词结构紧跟factory之后作其修饰语。
a firm:逗号后的a firm是名词作为OPPO的同位语来修饰OPPO。
started by China’s BBK Electronics:分词结构修饰firm
but: 并列连词,其后面的内容which is now run independently和前面started by China’s BBK Electronics并列共同修饰a firm。
纠错:考虑到but作为并列连词要求前后平行,所以which is now run independently应该修改正now run independently比较合适,这样不但可以保证now run independently和started by China’s BBK Electronics的完美平行,并且还可以传递run是done的形式。
大意:在沙砾和污垢中,是一个闪闪发光的低矮的工厂,每年为OPPO生产差不多50,000,000台智能手机,OPPO是中国的步步高电子创立现在单独运营的一家公司。
[2] Inside, as well as the usual assembly lines and serried workers, the factory has dozens of staff in quality engineering and testing, conducting 130 different tests on OPPO’s phones before they are released to the market. Such zealous pursuit of quality would be expected of factories that produce phones for Apple—the world-class facilities run by Taiwan’s Foxconn in nearby Shenzhen house similar teams. But it is unusual at a firm that makes relatively inexpensive handsets for the local market.
serried [ˈserid]
adj. (指士兵的行列等) 密集的,靠紧的;
[例句]He could not rank as yet with the magnates of the East-the serried sequoias of wall street.
他还不能够同东部大王们华尔街林立的参天红杉并列。
zealous [ˈzeləs]
adj. 热心的,热情的;
[例句]She was a zealous worker for charitable bodies
她对慈善事业充满热忱。
Foxconn
n. 富士康(公司名);
[例句]What, s the suicide rate at a similar company to Foxconn?
在一个和富士康类似的公司的自杀率是多少?
handset [ˈhændset]
n. 手机; 手持机; 电话听筒; (电视等的) 遥控器;
[例句]At that point the radio handset fell to pieces.
就在那一刻,无线电遥控器摔得粉碎。
facilities [fə'sɪlɪtɪz]
n. 工具; (学习、做事的) 天资; (机器等的) 特别装置; (供特定用途的) 场; 设备( facility的名词复数); 容易; 能力; 灵巧;
[例句]Medical facilities are being reorganized and upgraded.
正在对医疗设施进行重组和升级。
house [haʊs]
n. 房屋; 全家人; (从事某种生意的) 公司; (英国) 下议院;
v. 给…提供住房; 收藏; 安置;
[例句]She has moved to a smaller house.
她已经搬进了一所小一些的房子。
The building will house twelve boys and eight girls
这座房子里会住12个男孩和8个女孩。长难句:
Such zealous pursuit of quality would be expected of factories that produce phones for Apple—the world-class facilities run by Taiwan’s Foxconn in nearby Shenzhen house similar teams.
句子架构分析
Such zealous pursuit of quality:名词放在句首作主语,这里核心的名词是pursuit。
would be expected:句子的谓语动词
of factories:介词短语用来表明主语通过谓语动词要强调的对象。
that produce phones for Apple:定语从句作factories的后置定语。
—:破折号后内容为解释说明,对于前面整个句子进行解释。
the world-class facilities:名词作破折号后面句子的主语
run by Taiwan’s Foxconn in nearby Shenzhen:分词结构修饰facilities
house:house在这里作动词,是破折号后面句子的谓语。这里house的含义可以参考单词部分house的第二个例句。
similar teams:是house动词的宾语。
大意:这种对质量的极度追求只有那些为苹果生产手机的代工厂需要做到——在旁边的深圳,台湾的富士康公司运营的世界级别工厂,拥有差不多的团队。
[3] OPPO, and its sister firm, Vivo, also a child of BBK, started out in 2004 and 2009 respectively, making cheap and cheerful phones like plenty of other obscure Chinese manufacturers. They probably didn’t even register on Apple’s radar. Xiaomi was the Chinese handset-maker to watch; urban sophisticates, enticed by viral marketing, flocked to its slick devices. But in June 2016 OPPO’s R9, which costs around $400, overtook the iPhone, which is priced at twice that, as China’s best-selling handset. Vivo, which targets younger consumers with lower prices, is also surging.
respectively [rɪˈspektɪvli]
adv. 各自地; 各个地; 分别地;
[例句]Their sons, Ben and Jonathan, were three and six respectively
他们的儿子,本和乔纳森,分别是3岁和6岁。
obscure [əbˈskjʊə(r)]
adj. 昏暗的,朦胧的; 晦涩的,不清楚的; 隐蔽的; 不著名的,无名的;
vt. 使…模糊不清,掩盖; 隐藏; 使难理解;
n. 某种模糊的或不清楚的东西;
[例句]The origin of the custom is obscure
这一习俗的起源鲜为人知。
sophisticate [səˈfɪstɪkeɪt]
n. 老于世故的人; 见多识广的人;
[例句]You are a sophisticate.
你是见过世面的人。
entice [ɪnˈtaɪs]
vt. 诱惑; 怂恿;
[例句]Retailers have tried almost everything to entice shoppers through their doors
零售商们几乎尝试了所有办法以吸引购物者进入商店。
viral [ˈvaɪrəl]
adj. 病毒的,病毒引起的;
[例句]Two types of viral symmetry have been recognized, the cubical symmetry and helical symmetry.
已经证实病毒有两种对称型,即立体对称和螺旋对称。
flock [flɒk]
n. 兽群,鸟群; 群众; 棉束; 大堆,大量;
vi. 群集,成群结队而行;
vt. 用棉束填;
[例句]They kept a small flock of sheep
他们养了一小群羊。
slick 英[slɪk]
美[slɪk]
adj. 光滑的; 华而不实的; 熟练的,灵巧的; 机灵的,聪明的;
n. 光滑之处; [机] 平滑器; [机] 修光工具; 一层浮油;
vt. 使光滑,使光亮; 使美观; 使齐整; 占…的便宜;
[例句]There's a big difference between an amateur video and a slick Hollywood production
业余人士拍摄的视频片段和制作精良的好莱坞影片之间存在着巨大的差距。
[4] The two brands’ achievements are remarkable. Two years ago they were struggling to join China’s top five smartphone makers; now they are among the biggest five globally. One out of every three smartphones sold in China in the third quarter of 2016 carried one of their brands; in 2012 their combined share was below 3%.
achievements [ət'ʃi:vmənts]
n. 成绩; 成就( achievement的名词复数 ); 功绩; 达到;
[例句]We are proud of our achievements.
我们为我们的成就而感到自豪。
[5] That should give Apple pause. Tim Cook, its boss, predicted in 2013 that China would become his firm’s biggest market. But iPhone sales there have stagnated (see chart). In the third quarter its market share fell to 7.1%, down from 11.4% a year earlier.
pause [pɔ:z]
n. 暂时的停顿; 犹豫; (诗中) 节奏的停顿; [乐] 延长号;
vi. 暂停,中止; 逗留,停滞; (按暂停键) 暂停放音; 犹豫;
[例句]'It's rather embarrassing,' he began, and paused
"非常令人难堪,"他开口道,然后停顿了一下。
stagnate [stægˈneɪt]
vi. 停滞,不流动,不发展; 变萧条;
vt. (使) (水等)停滞不流; (使) 不动,(使)不活动; (使) 迟钝,(使)不活泼; (使) 变萧条;
[例句]Industrial production is stagnating
工业生产正停滞不前。
[6] Xiaomi has even more reason to fret. About six years ago it bet on an “asset light” strategy, meaning it relied almost entirely on selling its phones online. This worked brilliantly when the overall market for smartphones was growing, and the richest cities, with the largest number of tech-aware consumers, were booming. Xiaomi was once valued at some $46bn, but its fortunes in China have plunged.
plunge [plʌndʒ]
vt. 用力插入; 使陷入;
vi. 跳入; 全心投入; 突降,俯冲;
n. 投入,陷入; 游泳,跳水;
[例句]The government's political and economic reforms threaten to plunge the country into chaos
政府的政治和经济改革可能会使国家陷入混乱局面
[7] That is chiefly due to the fact that growth has shifted sharply to the rising middle classes in smaller cities. Consumers there are less experienced with smartphones than their fancier cousins in Beijing and Shanghai, and are wary of buying them online. They want to touch and compare handsets. OPPO and Vivo spotted this difference early. OPPO in particular shot to the top because it invested heavily in bricks-and-mortar retail distribution in lower-tier cities. Today the firm’s phones are sold at some 200,000 retail outlets across the mainland, which gives its salesmen the chance to coddle customers and nudge them to buy pricier phones.
wary [ˈweəri]
adj. 谨慎的,小心翼翼的; 警戒的,警惕的;
[例句]People did not teach their children to be wary of strangers
过去人们不会教育孩子提防陌生人。
bricks-and-mortar
adj. 实体的、现实世界存在的;
[例句]Already we've seen internet shopping become a competitor to bricks-and-mortar stores.
我们已经看到网上购物成为一个砖块和水泥商店的竞争对手。
coddle [ˈkɑ:dl]
vt. 悉心照料,娇惯;
[例句]She coddled her youngest son madly
她对小儿子过于溺爱。
nudge [nʌdʒ]
n. 推动; 用肘轻推;
vt. 推进; (用肘) 轻推;
[例句]I nudged Stan and pointed again
我轻轻推了推斯坦,又指了一下。长难句:
Consumers there are less experienced with smartphones than their fancier cousins in Beijing and Shanghai, and are wary of buying them online.
句子架构分析
句子主干:Consumers are…, and are…
比较结构: A is less experienced with sth than B, A比B在sth上的经验更少。
地点状语: 前面的there=in smaller cities表示地点修饰consumers。
大意:在小城市的消费者相对北京上海的消费者来说对于智能手机的经验更少,并且很戒备在线购买智能手机。
[8] At first, OPPO’s strategy was masterminded by Duan Yongping, founder of BBK, who began by selling basic electronics. He is known in China as “Duanfett”, a play on Warren Buffett, because of his financial acumen and also his admiration for MrBuffett (he paid over $600,000 at an auction to have lunch with him in 2007). Mr Duan has since retired, but still influences the firms’ cultures.
acumen[ˈækjəmən]
n. 敏锐; 聪明; <植>渐尖头; <动>短刺;
[例句]His sharp business acumen meant he quickly rose to the top.
他精明的商业头脑令其青云直上。
auction [ˈɔ:kʃn]
n. 拍卖; 竞卖; 标售; (桥牌) 拍卖玩法;
vt. 拍卖; 竞卖;
[例句]Lord Salisbury bought the picture at auction in London some years ago
几年前,索尔兹伯里勋爵在伦敦拍得了这幅画。
[9] It took discipline not to be waylaid by the striking (though short-lived) success of Xiaomi’s hype-fuelled internet strategy. Many other companies tried to copy it. From 2011 to 2013, insiders say, OPPO looked hard at expanding its online sales channels, but decided against it. Sky Li, managing director of OPPO’s international mobile business, says the reason lies in her firm’s long-held adherence to the philosophy of ben fen—loosely translated, sticking to one’s knitting.
discipline [ˈdɪsəplɪn]
vt. 训练; 使有纪律; 处罚; 使有条理;
n. 纪律; 学科; 训练; 符合行为准则的行为(或举止);
[例句]Order and discipline have been placed in the hands of headmasters and governing bodies.
维持秩序和纪律的工作已交接给了校长和管理机构了。
waylaid [weɪˈleɪd]
v. 拦截,拦路( waylay的过去式和过去分词 );
[例句]I'm sorry, Nick, I got waylaid.
抱歉,尼克,我被人耽搁了。
hype [haɪp]
n. 天花乱坠的广告宣传;
vt. 大肆宣传; 夸张地宣传(某人或某事物);
[例句]We are certainly seeing a lot of hype by some companies
我们无疑已经看到来自一些公司的大肆宣传。
adherence [ədˈhɪərəns]
n. 坚持; 依附; 忠诚; 密着;
[例句]Their religious adherence is not to the established church.
他们信仰的不是国教。
knitting [ˈnɪtɪŋ]
n. 编结物; 接合,联合; [外科] 骨愈合;
v. (使) 愈合( knit的现在分词); 编结,编织; (使) 紧密地结合; 织平针;
[例句]Take up a relaxing hobby, such as knitting.
培养一种能放松身心的爱好,比如编织。
长难句:
Sky Li, managing director of OPPO's international mobile business, says the reason lies in her firm's long-held adherence to the philosophy of ben fen-loosely translated, sticking to one's knitting.
句子架构分析
Sky Li:人名,名词放在句首作主语。
managing director of OPPO's international mobile business:主语之后打逗号因为插入语,这里插入语两个逗号隔开,是名词在作主语人名的同位语,说明这个任的角色和身份。
says:谓语动词。谓语之后的宾语是一个从句。
the reason lies in her firm's long-held adherence to the philosophy of ben fen:这是says后面的宾语从句,从句的主干是the reason lies in adherence.
-loosely translated, sticking to one's knitting: 破折号内容属于解释说明,解释adherence to the philosophy of ben fen。
大意:OPPO国际移动手机部的总裁Sky Li说,原因在于公司长久坚持的"本分"理念,也就是说坚持自己的原则。
[10] Instead, OPPO became still more expert at incentivizing its physical retailers. It has shown itself willing to share some of its profits with local stores. It uses a sophisticated system of subsidies that vary by model and season. One retailer in a small town in Sichuan says that although he sells many brands of smartphones, OPPO’s generous subsidies make him extra-eager to peddle its wares.
incentivize [ɪn'sentɪvaɪz]
vt. 以物质刺激鼓励;
[例句]Why are we still subsidizing and incentivizing oil companies and we won't incentivize the solar energy project?
为什么我们仍补贴和激励石油公司,而我们不激励太阳能计划?
generous [ˈdʒenərəs]
adj. 慷慨的,大方的; 丰盛的; 肥沃的; 浓厚的;
[例句]German banks are more generous in their lending
德国银行的借贷条件更为宽松。
peddle [ˈpedl]
vt. 传播,散播; 兜售,叫卖; 忙于做琐事;
[例句]His attempts to peddle his paintings around London's tiny gallery scene proved unsuccessful.
他到伦敦小画廊兜售自己的画作,结果碰了一鼻子灰。
[11] That has its costs, of course: OPPO does not disclose the size of its total subsidies nor its profit margin, which may be low compared with other smartphone makers. Fat profits are hard to come by in China’s giant smartphone market. Because it is simple for firms to outsource almost every aspect of phonemaking, from designing components and chipsets to contract manufacturing, the barrier to entry is low (the physical networks that OPPO and Vivo have built will be far harder to replicate than an online presence). Teeming firms means vicious price competition, especially for cheaper phones. The price of a Chinese smartphone may drop to as little as $50, analysts reckon.
replicate 英[ˈreplɪkeɪt]
美[ˈrɛplɪˌket]
vt. 复制,复写; 重复,反复; 折转; [生] 复制;
adj. 复制的; 折叠的; [植] 折转的;
n. 复制品; 八音阶间隔的反覆音;
[例句]He invited her to his laboratory to see if she could replicate the experiment.
他邀请她到他的实验室看她能否复制该实验。
teeming 英[ˈti:mɪŋ]
adj. 丰富的;
v. 充满( teem的现在分词 ); 到处都是; (指水、雨等) 暴降; 倾注;
[例句]The rain was teeming down and she thought she heard a rumble of thunder.
雨下得很大,她觉得她听见了一阵轰隆隆的雷声。
vicious [ˈvɪʃəs]
adj. 邪恶的,恶毒的; 有恶意的; 凶猛的; 有缺点的;
[例句]He was a cruel and vicious man
他是一个残忍凶狠的男人。
reckon [ˈrekən]
vt. 认为; 计算; 测算,估计; 评定,断定;
vi. 估计; 计算; 猜想; 料想;
[例句]Toni reckoned that it must be about three o'clock
托妮估计当时肯定是3点钟左右。
[12] Pressures at home explain why Chinese firms are also looking abroad. In the fourth quarter of 2016, Xiaomi and Vivo were vying with each other behind Samsung in the race for second place in India’s smartphone market. Huawei, a local telecoms- equipment giant that ranks third in the domestic market, already makes two fifths of its sales outside China; Shao Yang of its consumer-business group says this share will rise to three-fifths within five years. OPPO is already a force in India, and is in second place in South-East Asia behind Samsung. It has opened a new marketing centre in Cairo to spearhead expansion in Africa and the Middle East.
vying [ˈvaɪɪŋ]
adj. 竞争的,竞赛的;
v. (为某事物) 激烈竞争,争夺某事物( vie的现在分词 ); 使竞争,使针锋相对; (常用于进行时) (为某事物)与…激烈竞争;
[例句]The two are vying for the support of New York voters.
两人在争夺纽约选民的支持。
domestic [dəˈmestɪk]
adj. 国内的; 家庭的,家的; 驯养的; 热心家务的;
n. 佣人; 国货;
[例句]She was kind and domestic and put her family before her part-time job.
她人很好也顾家,把家庭看得比兼职工作更为重要。长难句:
Huawei, a local telecoms- equipment giant that ranks third in the domestic market, already makes two fifths of its sales outside China; Shao Yang of its consumer-business group says this share will rise to three-fifths within five years.
这个句子属于SVO; SVO.的类型,分号前后是两个并列句。
先分析分号前面的句子
Huawei:名词放在句首作句子的主语。
a local telecoms- equipment giant:主语之后打逗号因为插入语,a…giant是一个名词作主语Huawei的同位语。
that ranks third in the domestic market:定语从句作giant的后置定语,到这里整个插入语结束
makes:谓语动词。
two fifths of its sales outside China:sales是宾语。two fifths of 是数字修饰sales,outside China表地点也修饰sales。
再来分析分号后面的句子
Shao Yang of its consumer-business group:这里名词Shao Yang作句子主语,of its consumer-business group介词短语修饰Shao Yang。
says:谓语动词
this share will rise to three-fifths within five years:是says的宾语从句。
大意:华为,一个在国内市场排第三的电子设备巨头,已经有2/5的销售额来自海外;其零售事业部的SY说这个比例在五年内将会增长到3/5。
[13] Kevin Wang of IHS Markit, a research firm, nonetheless reckons that a round of consolidation must be on its way. Within five years, he reckons, most of the 50 or so local Chinese phone manufacturers will be gone. If OPPO and Vivo can stay at the summit, that would be nearly as surprising as the dizzying speed of their ascent.
consolidation [kənˌsɒlɪ'deɪʃən]
n. 巩固; 合并; 联合; 变坚固;
[例句]Consolidation in the platform and server markets has been underway for some time.
对平台和服务器市场的合并已经进行了一段时间了。
summit [ˈsʌmɪt]
n. 顶点; 高层会议; 最高阶层;
adj. 最高级的; 政府首脑的;
[例句]Snow gleamed on the summit of Mount Simon.
西蒙山山顶白雪皑皑。
dizzying [ˈdɪziɪŋ]
adj. 令人昏乱的,灿烂的;
v. 使人眩晕的( dizzy的现在分词 ); 头昏眼花的; 引起头晕的; 愚蠢的;
[例句]Today, technology offers a dizzying number of choices for entertainment, information, and communication.
今天,科技在娱乐,信息和交流方面为我们提供了令人晕眩的选择。
ascent [əˈsent]
n. 上升; 上坡; 登高; 追溯;
[例句]It was a tough course over a gradual ascent before the big climb of Bluebell Hill.
在爬崎岖的蓝钟山之前有一段很难走的上行缓坡路。
来源:
How OPPO and Vivo are beating Apple, Xiaomi and the gang
[1] DONGGUAN, a southerly Chinese city near Hong Kong, is better known for cranking out cheap trinkets than for producing high-end equipment of any kind. And yet, amid the grit and grime is a gleaming low-rise factory producing some 50m smartphones a year for OPPO, a firm started by China’s BBK Electronics but which is now run independently.
[2] Inside, as well as the usual assembly lines and serried workers, the factory has dozens of staff in quality engineering and testing, conducting 130 different tests on OPPO’s phones before they are released to the market. Such zealous pursuit of quality would be expected of factories that produce phones for Apple—the world-class facilities run by Taiwan’s Foxconn in nearby Shenzhen house similar teams. But it is unusual at a firm that makes relatively inexpensive handsets for the local market.
[3] OPPO, and its sister firm, Vivo, also a child of BBK, started out in 2004 and 2009 respectively, making cheap and cheerful phones like plenty of other obscure Chinese manufacturers. They probably didn’t even register on Apple’s radar. Xiaomi was the Chinese handset-maker to watch; urban sophisticates, enticed by viral marketing, flocked to its slick devices. But in June 2016 OPPO’s R9, which costs around $400, overtook the iPhone, which is priced at twice that, as China’s best-selling handset. Vivo, which targets younger consumers with lower prices, is also surging.
[4] The two brands’ achievements are remarkable. Two years ago they were struggling to join China’s top five smartphone makers; now they are among the biggest five globally. One out of every three smartphones sold in China in the third quarter of 2016 carried one of their brands; in 2012 their combined share was below 3%.
[5] That should give Apple pause. Tim Cook, its boss, predicted in 2013 that China would become his firm’s biggest market. But iPhone sales there have stagnated (see chart). In the third quarter its market share fell to 7.1%, down from 11.4% a year earlier.
[6] Xiaomi has even more reason to fret. About six years ago it bet on an “asset light” strategy, meaning it relied almost entirely on selling its phones online. This worked brilliantly when the overall market for smartphones was growing, and the richest cities, with the largest number of tech-aware consumers, were booming. Xiaomi was once valued at some $46bn, but its fortunes in China have plunged.
[7] That is chiefly due to the fact that growth has shifted sharply to the rising middle classes in smaller cities. Consumers there are less experienced with smartphones than their fancier cousins in Beijing and Shanghai, and are wary of buying them online. They want to touch and compare handsets. OPPO and Vivo spotted this difference early. OPPO in particular shot to the top because it invested heavily in bricks-and-mortar retail distribution in lower-tier cities. Today the firm’s phones are sold at some 200,000 retail outlets across the mainland, which gives its salesmen the chance to coddle customers and nudge them to buy pricier phones.
[8] At first, OPPO’s strategy was masterminded by Duan Yongping, founder of BBK, who began by selling basic electronics. He is known in China as “Duanfett”, a play on Warren Buffett, because of his financial acumen and also his admiration for MrBuffett (he paid over $600,000 at an auction to have lunch with him in 2007). Mr Duan has since retired, but still influences the firms’ cultures.
[9] It took discipline not to be waylaid by the striking (though short-lived) success of Xiaomi’s hype-fuelled internet strategy. Many other companies tried to copy it. From 2011 to 2013, insiders say, OPPO looked hard at expanding its online sales channels, but decided against it. Sky Li, managing director of OPPO’s international mobile business, says the reason lies in her firm’s long-held adherence to the philosophy of ben fen—loosely translated, sticking to one’s knitting.
[10] Instead, OPPO became still more expert at incentivizing its physical retailers. It has shown itself willing to share some of its profits with local stores. It uses a sophisticated system of subsidies that vary by model and season. One retailer in a small town in Sichuan says that although he sells many brands of smartphones, OPPO’s generous subsidies make him extra-eager to peddle its wares.
[11] That has its costs, of course: OPPO does not disclose the size of its total subsidies nor its profit margin, which may be low compared with other smartphone makers. Fat profits are hard to come by in China’s giant smartphone market. Because it is simple for firms to outsource almost every aspect of phonemaking, from designing components and chipsets to contract manufacturing, the barrier to entry is low (the physical networks that OPPO and Vivo have built will be far harder to replicate than an online presence). Teeming firms means vicious price competition, especially for cheaper phones. The price of a Chinese smartphone may drop to as little as $50, analysts reckon.
[12] Pressures at home explain why Chinese firms are also looking abroad. In the fourth quarter of 2016, Xiaomi and Vivo were vying with each other behind Samsung in the race for second place in India’s smartphone market. Huawei, a local telecoms- equipment giant that ranks third in the domestic market, already makes two fifths of its sales outside China; Shao Yang of its consumer-business group says this share will rise to three-fifths within five years. OPPO is already a force in India, and is in second place in South-East Asia behind Samsung. It has opened a new marketing centre in Cairo to spearhead expansion in Africa and the Middle East.
[13] Kevin Wang of IHS Markit, a research firm, nonetheless reckons that a round of consolidation must be on its way. Within five years, he reckons, most of the 50 or so local Chinese phone manufacturers will be gone. If OPPO and Vivo can stay at the summit, that would be nearly as surprising as the dizzying speed of their ascent.