China to Remain Top in Global Smartphone Market

By: Umair Yousuf  |   January 18th, 2013   |   Business, News

China will once again retain its position as the top market for smartphones this year according to analysts. With domestic Chinese companies dominating the market through their low priced smartphones analysts believe that 2013 will see almost 240 million devices sold in the country.

 

That figure accounts for almost one-third of global shipments with a majority built by domestic companies such as ZTE Corp, Huawei, and Lenovo Group. Due to these companies low cost devices China will account for 29% of all devices sold this year while the United States, the second biggest global smartphone market, will follow at a distance.

 

In 2012 China gained the top spot as the world’s biggest manufacturer of smartphones with 224 million devices shipped from the country. This figure is likely to grow this year as analysts believe that developing countries such as China will contribute the majority of the growth witnessed in this sector.

 

Analysts are also predicting greater problems for international brands as local Chinese smartphone manufacturers capture much of the large mid to low end market.

 

Nicole Peng, research director at Canalys’ China office in Shanghai said:

 

“With smartphones starting to penetrate lower-tier Chinese cities, international brands lack real competitive advantages in those areas.”

 

Wang Jingwen, an analyst with Canalys also said that these manufacturers will be looking to expand to other emerging markets:

 

“Their goals are straightforward: to grow economies of scale or fulfill production capacity and to increase profit margins as pricing pressure is lower in overseas markets.”

 

China is seeing increased demand for smartphones year-on-year and the country has truly cemented its position as a leading market for smartphones.

 

Source: China.org.cn