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Domestic smartphones lead in global market share

(People's Daily Online)    11:08, July 01, 2014
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As in previous years, prior to Apple's release of its new phone, the domestic mobile phone manufacturers have begun to launch their new products and do what they can to attract customers' attention. However, in recent years the domestic mobile phone producers have become increasingly confident about their confrontation with Apple, Samsung, Nokia and other traditional foreign big brands. They are winning bigger shipments and greater market share. 

Change strategies

Over the past two or three years, with the rapid growth of the smartphone market, China's domestic mobile phone manufacturers have seized the lion's share of the low-end mobile phone market. In particular the three major telecom operators ZTE, Coolpad, and Lenovo are taking advantage, and their sales have carried them into the world's top ten in a short time.

However, with smart phones now having relaced traditional phones in most of the existing market, the demand for smart phones will reduce. In response, manufacturers like Xiaomi, have changed market strategies by using Internet thinking, and have cultivated a large number of loyal supporters. Other mobile phone producers including Huawei, Meizu, VIVO and Smartisan, have plowed effort into branding and marketing channels, which has convinced many domestic customers to change their impression of domestic phones.

4G - a huge opportunity

Undoubtedly, the coming of 4G is a huge opportunity for mobile phone manufacturers, and there is likely to be a major reshuffle in the entire mobile phone market. One market research firm predicts that in 2014 domestic 4G mobile phone sales will reach 72.4 million, a 15-fold increase. But figures given by operators are even more optimistic. China Mobile is expecting to sell 100 million 4G phones this year and China Telecom's goal is 36 million.

Tempted by such a huge market, some of the domestic mobile phone brands rolled out their 4G-related products early last year.

According to the latest survey data released in May, the Coolpad has surpassed Apple and Samsung to rank first in the 4G mobile phone market in China, accounting for 23.1 percent, followed by Samsung (18.8 percent) and Apple (15.7 percent). 

At the same time, domestic mobile phone manufacturers are actively expanding their overseas markets. Especially in recent years, as Nokia, Motorola, LG and other international brands have declined significantly, domestic mobile phones are filling the market gaps.

During the first quarter in 2014, among the top ten mobile phone manufacturers in global shipments, Chinese domestic brands occupy the top six positions, with a total market share of over 25 percent. Lenovo ranks first with 7.5 percent of share of global shipments followed by Huawei (5.2 percent) and Xiaomi (4 percent).

The article is edited and translated from《国产手机的“逆袭之路”》, source: People's Daily Overseas Editon, author: Luo Jun

(Editor:Liang Jun、Yao Chun)

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