Smartphones are advertised at a China Mobile Ltd store in Shanghai.Chinese shoppers are expected to buy morethan 400 million smartphones this year and the amount is on track to break 500 million by 2016, AnalysysInternational said. AFP
China will become the world’s largest mobile phone market by revenue for the first time byyear end, overtaking the United States, an industry report said. Internet guru Mary Meeker hasidentified the country as the most mobile nation in the world.
Phone sales will reach $87 billion in China during 2014, a jump of 53 percent year-on-year.That compares with $60 billion projected sales in the US, Strategy Analytics said.
Smartphones dominate sales. Chinese shoppers will buymore than 400 million smartphones this year, according tolocal research company Analysys International. Theamount is on track to break 500 million by 2016, it said.
Meeker acknowledged China’s role in the global mobileInternet sector. The world’s second-largest economy ismoving swiftly to become a leader in mobile commerce,helped with applications installed on smartphones,according to Meeker. She is a partner at venture capital firmKleiner Perkins Caufield & Byers.
As of last year, more than 500 million Chinese were usingmobile devices – primarily smartphones – to connect to theInternet, according to the China Internet NetworkInformation Center. The penetration rate of mobile Internetusers rose to a record 81 percent in 2013.
China beat the US in terms of smartphone shipments in2012.
The growth in mobile devices is driven by the country’srapid shift to fourth-generation telecommunications technologies, analysts said.
Leading players, such as Samsung Electronics Co, Huawei Technologies Co Ltd and LenovoGroup Ltd, have pledged to expand their distribution channels, and a widening productoffering is diversifying demand in China.
Although China leads the global mobile phone market in many ways, the Strategy Analyticsreport said the US is most likely to remain the most valuable market by profit for a while.
“High average selling prices and huge operator subsidies will make the US a very profitablemarket for major device brands such as Apple and Samsung,” it said.
The world’s leading smartphone brands may find it difficult tomaintain a high growth rate in China, where analysts said thehigh double-digit expansion may be nearing its end.Additionally, local players are vigorously expanding businesseson their home turf.
Lenovo, better known for its PC business outside China, isbetting on smartphones for future profit. The Beijing-basedcompany became the second-largest smartphone vendor inChina by the end of the first quarter, data from AnalysysInternational showed. Its 12.3 percent market share only lagsbehind Samsung.
Coolpad – Yulong Computer Telecommunication Scientific(Shenzhen) Co Ltd – as well as Huawei and Xiaomi Corpenjoyed near double-digit market share and Apple’s sharedropped to less than 7 percent.
Bryan Wang, China head at consultancy Forrester Research Inc, said 4G is a necessaryfeature for companies such as Xiaomi to put into their portfolio as Chinese are eager for fasterInternet speeds.
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