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Home >News >CCCME News > Content

China's smartphones shipments to grow 6%

Publish Time:2013-07-19 00:00:00 Source:idc.com

China's mobiles phones shipments registered at 97 million units in Q1 2013, up 15% compared with the same period in 2012, while China's smartphones shipments totaled 78 million units in Q1 2013, with a growth of 117% compared with the same period in 2012.

International Data Corporation (IDC) believes such a high-speed growth of China's smartphones market would not be possible without China mobiles's efforts.
According to IDC's 2013 Q1 China mobiles phones Quarterly Tracker, shipments of TDMC-based (Time Division Multiple Access) smartphoness reached 28 million units in Q1 2013, with a year-on-year growth of 390%. This resulted in the share of smartphoness in China's mobiles phones market reaching a new high of 79%.
From the perspective of vendors, in terms of smartphones shipments, Samsung continues to rank as No 1 with a market share of 19% and a link relative ratio of 34%. Its shipments of products under $200 grew by 47%.
In Q1 2013, ranked the fifth with a market share of 9% and a link relative ratio of 21%. The shipments of iphoness4 (8G), which is an excellent performer, grew by 211% over the previous quarter.
Except , despite the recent release of their operator-subsidized products, other large domestic mobiles phones vendors have not experienced a prominent increase in their Q1 shipments.
Antonio Wang, associate director of Computing Systems Research Group of IDC China, says, "In China's smartphones market, Samsung has switched its marketing focus from competing with Apple for high-end market to maintaining its high-end market share, and is starting to strive for market for products under $200, which has so far been dominated by domestic brands. However, Apple leverages the incentive policies for channels to inspire the shipments of iphoness4, further expanding its user base."
IDC predicts that, thanks to operator subsidies and robust consumer demands for new phoness, China's smartphones shipments will increase sharply in 2013; in 2017, smartphones shipments will exceed 460 million units to reach a market size of RMB 740.5 billion ($117.8 billion).
IDC research indicates that the development of smartphoness will inevitably drive the innovation of the entire industry chain, further promoting the perfection of mobiles communications and ecosystem.
James Yan, senior analyst of IDC China, who is responsible for mobiles phones market research, predicts that the development trends of China's mobiles phones industry chain will manifest in the following aspects in the next five years:

  China's smartphones shipments to grow 6%
4G smartphones will make up 40% market share in 2017.[Graph/IDC]  

By 2017, 4G mobiles phones shipments will outnumber 3G mobiles phones shipments. IDC predicts that, with an increasing share of upstream 4G chip vendors eng in mass production, the push by China's three major operators, and the support from terminal vendors, the shipments of 4G mobiles phoness will outnumber those of 3G mobiles phoness in 2017. That will further promote the development of the entire mobiles communications and mobiles internet industry.

By the end of 2013, the market share of smartphoness with screens 5-inch and above will exceed 20%. Influenced by the operators' demands for customized product specifications (large screen over 5 inches, dual-core/quad-core) and the positive effect of Samsung's GALAXY S and Note series on the growth of large-screen mobiles phones market, large-screen mobiles phoness are gradually becoming acceptable to consumers. As a result, mobiles phones vendors quickly responded with the release of a large amount of smartphoness with 5-inch above screens. IDC data indicates that, as of Q1 2013, the market share of 5-inch above smartphoness reached 7.5%, up 74% over the previous quarter. IDC forecasts that this figure will exceed 20% by the end of 2013.

China's smartphones shipments to grow 6%

The market share of smartphoness with screens 5-inch and above will exceed 20%.[Graph/IDC]

Large domestic vendors will acquire upstream and downstream businesses to close gaps in supply chain. Domestic brands, which have encountered many bottlenecks in developing high-end products, such as product subjected to limits and core components controlled by large foreign vendors, need to urgently integrate the upstream and downstream of the industry chain or consider (M&A) strategies. IDC expects that many M&As in relation to the industry chain will emerge in the next two years.

Vendors will prepare themselves for mobiles internet and communications to enhance stickiness or vie for mobiles Internet entrance. It is difficult for mobiles phones vendors to differentiate by simply upgrading for higher premium. Getting ready for mobiles internet services, such as app store, voice input, mobiles browser, mobiles desktop and cloud service, has become an inevitable competition strategy for vendors to enhance stickiness and vie for mobiles internet entrance in the future.

Efforts will be made to develop wearable terminals and mobiles services such as somatosensory live action. Along with the development of flexible materials and sensing devices, mobiles phones peripherals and wearable terminals will enter the development stage; meanwhile, industrial applications (including health care and education) and consumer services (such as life tools, gaming and shopping) will attract more attention.