IDC’s latest Mobile Phone Tracker shows the China smartphone market contracted by 4% year over year with 98.8 million units shipped in the first quarter of 2015. This is the first time in six years that the China smartphone market declined YoY as the market continues to mature. On a quarter over quarter basis, the market contracted 8% on the back of a large inventory buildup at the end of last year.
“Smartphones are becoming increasingly saturated in China,” said Kitty Fok, Managing Director at IDC China, in a statement. “China is oftentimes thought of as an emerging market but the reality is that the vast majority of phones sold in China today are smartphones, similar to other mature markets like the US, UK, Australia, and Japan. Just like these markets, convincing existing users as well as feature phone users to upgrade to new smartphones will now be the key to further growth in the China market.”
Apple was the top smartphone vendor in China in the first quarter of 2015, with consumers still having a strong appetite for the larger screens on the iPhone 6 and iPhone 6 Plus. Xiaomi slipped to the second position as it faced strong competition from other vendors in the low to mid-range segment of the market, while Huawei maintained third position as it saw a good uptake in the mid-range segment. Samsung and Lenovo both led the market at least once last year, but their shares have since imploded.
IDC expects relatively flat growth for China in 2015. Other trends to expect in China this year include:
• Multi-brand strategies. Huawei and ZTE are positioning younger sub-brands Honor and nubia, respectively, to chip away at Xiaomi’s user base, and to attempt to gain a loyal fanbase. Lenovo is also getting into the mix with the Motorola acquisition, not to mention its upcoming online-focused Shenqi division.
• Higher price tier competition. More vendors like Huawei, Lenovo, and even Xiaomi are trying to push higher into the mid to high-end segment.
Non-traditional channel strategies. Reduced operator subsidies mean that vendors will further expand channels into more vendor-branded retail shops, direct online sales, and eTailers instead. In particular, they are trying to save on the cost that they had to pay to the traditional dealers/distributors in the past.
• Expansion into overseas markets. With the market in China slowing down, Chinese vendors will focus on increasing their presence in India as well as more Southeast Asia countries in 2015.
“To successfully combat local players overseas, Chinese vendors will need to focus on channel relationships and localized marketing strategies,” said Tay Xiaohan, Senior Market Analyst with IDC Asia/Pacific’s Client Devices team, in a stateemnt. “Most of the market’s growth will come from sub-US$150 phones as feature phone users switch to low-cost smartphones.”
Source: IDC Asia/Pacific Quarterly Mobile Phone Tracker, May 2015
Notes:
* Figures may not be exact due to rounding.
* Lenovo 2015Q1 includes shipments from its subsidiaries including Motorola.
* For comparison, IDC have included 2014Q1 Lenovo + Motorola above, however acquisition was not finalized until 2014Q4
Guess I can’t show you now a relevant thermonuclear , the post has been removed, I guess some gutless cowards are shaking in their boots knowing how much of a bitch karma is going to be.
It swings both ways those who attempt to silence those often end up being silenced themselves.
Yeah downvote me all you want. You know I’m right. Let me expand that suggestion a bit. How about a MULLET Head with a Pikey accent copying Sir J Ive for new Samesuck ads and commercials. 😛
But hey! samsung ships more phones than Apple world wide… They don’t make a damn penny and they have more returns and repairs than anyone but,… Numbers.. Numbers..
“Kitty Fok, Managing Director at IDC China, in a statement. “China is oftentimes thought of as an emerging market but the reality is that the vast majority of phones sold in China today are smartphones, similar to other mature markets like the US, UK, Australia, and Japan.”
Uhm, what Kitty doesn’t seem to understand is that China is still characterized as emerging because the middle class is growing dramatically, and, the number of 4G subscribers transitioning from pay-as-you-go plans is growing dramatically. You can have a smartphone and be using it like a feature phone on a pay-as-you-go plan, so just measuring smartphone numbers doesn’t tell the whole story. Thanks, Kitty.
Yes, I remembered that. So why does anyone give them the time of day when they have perfect track record for getting predictions catastrophically wrong? Isn’t there some sort of ‘truth in marketing’ laws they could be squashed with?
Is this what ‘Thermonuclear’ looks like?!?
Guess I can’t show you now a relevant thermonuclear , the post has been removed, I guess some gutless cowards are shaking in their boots knowing how much of a bitch karma is going to be.
It swings both ways those who attempt to silence those often end up being silenced themselves.
Maybe Samesuck should hire someone that has “pikey” accent. Yes that would be awesome if Samstupid does another one in “Pikey” style. lol
Yeah downvote me all you want. You know I’m right. Let me expand that suggestion a bit. How about a MULLET Head with a Pikey accent copying Sir J Ive for new Samesuck ads and commercials. 😛
But hey! samsung ships more phones than Apple world wide… They don’t make a damn penny and they have more returns and repairs than anyone but,… Numbers.. Numbers..
Revenge is a dish best served cold
And Schadenfreude never gets old.
Suck it, Samdung.
Soooo
someone should photoshop an Apple T-shirt on that guy ‘Turning The Screw ‘…
“The Turn Of The Screw” with the thing burying into a Samsung logo.
“Kitty Fok, Managing Director at IDC China, in a statement. “China is oftentimes thought of as an emerging market but the reality is that the vast majority of phones sold in China today are smartphones, similar to other mature markets like the US, UK, Australia, and Japan.”
Uhm, what Kitty doesn’t seem to understand is that China is still characterized as emerging because the middle class is growing dramatically, and, the number of 4G subscribers transitioning from pay-as-you-go plans is growing dramatically. You can have a smartphone and be using it like a feature phone on a pay-as-you-go plan, so just measuring smartphone numbers doesn’t tell the whole story. Thanks, Kitty.
Wasn’t there an IDC report from 2011 or so that suggested Windows Phone would be dominant by 2015? That means any day now, right IDC?
Yes, I remembered that. So why does anyone give them the time of day when they have perfect track record for getting predictions catastrophically wrong? Isn’t there some sort of ‘truth in marketing’ laws they could be squashed with?
China a mature market? More BA from IDC.
IDC, research slanted the way you pay for.
Surprising that Lenovo fell as much as they did. Weren’t they meant to be darlings of Asia?