How China Phones Made It Big!
After Apple and Samsung, companies that are selling the maximum number of smartphones around the globe are undoubtedly the Chinese smartphone manufacturers. Companies like Huawei, Xiaomi, Lenovo, Coolpad, ZTE, and even Alcatel (which is now part of TCL Corp., a Chinese electronics company) have a big impact both on China and on the emerging economies.
These companies mostly sell unlocked smartphones that run the Android mobile operating system. They usually charge much lower prices than Apple and Samsung, and they have already started to challenge some of the world’s giant smartphone makers.
According to IDC market research firm, Xiaomi, which is based in Beijing, had been shipping the third-highest number of smartphones to retailers in the third quarter. Xiaomi was just ahead of Lenovo, also based in Beijing, who was in fourth place but nearly tied with LG. Xiaomi’s smartphone sales bounced to an amazing 211% year over year, reaching 17.3 million units.
Out of the top 17 smartphone makers globally in the third quarter, 10 were based in China, according to Strategy Analytics. Xiaomi has been ranked third in total production and Huawei has been ranked fifth. The rest of the Chinese group in Strategy Analytics’ top 17 included Lenovo, ZTE, TCL Alcatel, Lenovo (formerly Motorola under Google), Coolpad, Oppo, Vivo, Micromax and Gionee.
Samsung isn’t the only South Korean company which is struggling to compete with these low-cost Chinese rivals. The Korean Institute for Industrial Economics and Trade forecast recently announced that Chinese manufacturers will likely to catch up with or exceed their Korean rivals within the next two years.
However, Apple continues to stir with its shipment figures. Regardless of having a relatively smaller product line-up, the company shipped an impressive 47.5 million iPhone units in the last quarter. The figures matched those shared by Apple in its earnings report for the quarter that came out earlier this week. The company had sold a record 74.5 million iPhones in Q4 2014. According to IDC, Apple did well in China in the quarter.
While Chinese manufacturers Huawei and Xiaomi continue to perform strongly both in their home market and abroad, market leader Samsung finds itself under extreme pressure on both ends of the market. As iPhone sales damaged the Korean electronics in the high-end market, these Chinese vendors continued to gain market share in the lower-cost segment. Samsung was the only vendor among the top 5 to experience a year-over-year decline in shipments and subsequently its market share drop from 24.8 to 21.7 percent.
Even in the year 2013, the moderately unknown Xiaomi used to be categorised under “Others” while this year it is projected to be the world’s fifth, and maybe even fourth maker. Huawei is also doing quite well, growing its market share about two percentage points in the span of two years. Lenovo’s Motorola acquisition quickly catapulted it to third place with a 7.4% market share forecast for the year, and overall, the ascend can only be attributed to the Chinese phone makers getting stronger, with Samsung getting weaker.
The Chinese smartphone market continues to mature, growing consistently quarter-on-quarter with Huawei recording the highest smart phone shipments in its history without compromising its product margin or profitability.
by techtalks @TechTalks August 14, 2015 12:25 PM UTC