China Smartphone Market Share – Industry Analysis, Forecasts and Opportunity Assessment (2017-2023)

Report on China Smartphone Market Share – Industry Analysis, Forecasts and Opportunity Assessment (2017-2023)

Introduction to Market share of smartphone in China

China is unarguably the manufacturing hub of the world. The second-largest economy by value is also the second-largest consumer of products and services, behind the United States of America. On the strength of ambitious growth policies, the country is staking its claim to be the economic superpower of the future. Made-in-China products are ubiquitous in today’s age. A chief driver of this euphoria is the Chinese smartphone market. The smartphone-manufacturing prowess in China is unparalleled. Playing catch-up is futile. The Chinese dominance in the world smartphone market is testament to this superior capability on show.

End-User/Technology

The world today is run using electronic devices. More so with the smartphone. These little devices have penetrated the most obvious and most remote of regions and markets. The proliferation of smartphone production – coupled with the exponential increase in network strength and limitless data packages – has made smartphones accessible to most of the general population on the earth. A sizeable number of people also possess more than one device, while many others possess two phone numbers in the same device. Smartphones are truly the lifeblood of the current day.

Whether for personal or professional use, the smartphone market is replete with devices to suit all tastes. Hence, the market has been growing and will continue to grow in the future.

Market Dynamics

The demand for smartphones has increased tremendously over the last two decades, both domestically and internationally. All major smartphone companies in the world produce and sell their devices within China as well as in other nations, through export. Chinese manufacturers are in fact the market leaders in most developing markets of the world.

Hence, over this period, China has emerged as the numero uno in terms of production of electronic devices. This is chiefly due to the formulation of key government policies and initiatives which promoted such development in the country. Taking over from Japan and other electronic hubs, China has firmly established its spot at the top. India is the second largest manufacturer of smartphones, beating Vietnam to the position.

Market Segmentation

The Chinese smartphone market consists of both production and consumption.

In terms of production, it can be segmented into the following categories.

  • Domestic production, domestic consumption
  • Domestic production, international consumption

In terms of sales, the following can be the different segments.

  • Demographics
    • Age
    • Gender
    • Urban/Rural Lifestyle
  • Usage
    • Everyday casual
    • Professional

 

 

Regional/Geographic Analysis

Manufacturing hubs have been established all over the country, particularly near cities with easy access to port-side facilities. Most Chinese cities along the eastern half of the country are major industrial players, with products ranging from simple toys to complex electrical machinery.

Erstwhile villages like Shenzhen in the south and Tianjin in the east are now world-renowned electronic production centers. These areas are designated by the government as special economic zones (SEZs) and as such enjoy a host of benefits to promote manufacturing on a large scale.

Domestic companies like Huawei, ZTE, Vivo, OnePlus and Oppo are set up in these areas, particularly Shenzhen. International behemoths Apple, Samsung and others have outsourced a lion’s share of their production to these areas.

Opportunities

China offers a variety of reasons to set up phone manufacturing or assembly units. In particular, the cheaper labor and easy availability of raw material drive this booming industry. The electronic spare part industry is also well established to help hobbyists develop their own devices. The excellent supply chain capabilities are the final cog in the wheel. The export policies are robust and thus the system is conducive to facilitate trade activities in a seamless manner, to any part of the world.

On the commercial front, all major wireless technologies of the world are springing up in different parts of China, especially the urban areas of Beijing, Shanghai and other major Chinese cities. Therefore, the smartphone market ranges from the feature phones at lowest price points to the high-end devices designed by the main international and the established domestic players.

Key Players

In the recent past, Huawei has been the market leader by market share. Xiaomi, Vivo, Oppo, OnePlus and ZTE are close behind on this list. Among international makers, Samsung and Apple lead the pack in terms of sales in China. The numbers rise exponentially when exports are considered, since these companies dominate in most world markets.

Apart from these, firms from neighboring regions like Hong Kong (Lenovo) and Taiwan (Acer, Asus) operate in China and are fairly successful.

Major Trade Partners

The Chinese smartphone exports were valued at $127.3 billion, translating to 48% of the world figure in 2017. Large investments from USA, the European Union (EU) and Asian countries like India and Japan have fueled the expansion of the smartphone industry in the country. These countries in turn import these devices for consumption in their domestic markets.

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