Strategy Analytics released the latest report on the global smartphone market recently. There were some interesting features in this report. The total market share grew by at least 33% with a total unit sale of 281 million units during the first quarter (Q1) of 2014. The same period saw an increase of 9.4% in the total mobile phone market which include smartphones and all other feature phones. A total of 408 million units of mobile phones were shipped worldwide during the first quarter of 2014.
According to the report, Samsung reported its first decline in sales since the late 2009. The lower end of the market is where the competition is really intense, and Chinese handset makers have gained traction there. Apple has lost a slice of its market share too, since it continues to be weak in developing markets because of the lack of low-priced offerings to its clientele.
This is because Apple has nowhere else to go to purchase the screens that they require, for the quality that they want. They do use other suppliers, but they only produce a small amount compared to Samsung. The same thing applies to the main chips, such as ARM, and many other internal components.
This means that there is not really that much difference between any top of the range models, and the latest Chinese models. They all run recent versions of Android, and have similar specs, although the hardware is not often the latest, as this helps to keep the prices low. Some of the Chinese handsets are probably manufactured in the same factories as some of the big names, the majority of Apple products are made in China.
So what does the future hold for mobile phones in China? More than likely, branded products will continue to lose market share, as the Chinese models improve, and continue to pick up momentum. It is likely that the branded names will hit back at some point by lowering prices, but they can only really do that on the older models.
It was not a real surprise to the technology industry when recent sales figures emerged and they showed that Apple, Samsung loses ground to Chinese handset makers in Q1. Demand for branded products had been on the rise in China, but the cost of these units is still out of reach for the average person. So at some point China was going to start producing units that would be able to compete with the more well-known products.
According to the report, Samsung reported its first decline in sales since the late 2009. The lower end of the market is where the competition is really intense, and Chinese handset makers have gained traction there. Apple has lost a slice of its market share too, since it continues to be weak in developing markets because of the lack of low-priced offerings to its clientele.
This is because Apple has nowhere else to go to purchase the screens that they require, for the quality that they want. They do use other suppliers, but they only produce a small amount compared to Samsung. The same thing applies to the main chips, such as ARM, and many other internal components.
This means that there is not really that much difference between any top of the range models, and the latest Chinese models. They all run recent versions of Android, and have similar specs, although the hardware is not often the latest, as this helps to keep the prices low. Some of the Chinese handsets are probably manufactured in the same factories as some of the big names, the majority of Apple products are made in China.
So what does the future hold for mobile phones in China? More than likely, branded products will continue to lose market share, as the Chinese models improve, and continue to pick up momentum. It is likely that the branded names will hit back at some point by lowering prices, but they can only really do that on the older models.
It was not a real surprise to the technology industry when recent sales figures emerged and they showed that Apple, Samsung loses ground to Chinese handset makers in Q1. Demand for branded products had been on the rise in China, but the cost of these units is still out of reach for the average person. So at some point China was going to start producing units that would be able to compete with the more well-known products.
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