Chinese Market Is No Longer As Easy As A Pie
Globally, iPhone and Samsung had been taking leading positions in smartphones, and some Chinese companies like Huawei and Xiaomi has became two different leading corporations in Chinese market.
Generally, Chinese market is considered to be new market, but actually it has became a mature one since cell phone covering percentage has reached 97% and smartphone takes place a percentage of 72%, which is quite similar to US and UK markets, and thus the main reason for the decline in market size is the decrease in the number of first-time buyers, people in Chinese market buy new devices mainly for the reason of upgrade their phones, and Chinese market is no longer a new one.
For smartphone manufacturers and companies, product chain has been quite complete, chips, components, and some other accessories has been full of competitions, and in China, these companies could get 90% components.
The growing of Chinese market gave birth to many new smartphone brands, and it could be extremely easy to make a smartphone by using open source Android system by Google, chip from Qualcomm and MTK and yet many complete sets of smart phone hardware designs provided by domestic ODM foundries, and after equipping customized system and printing their own logo, their smartphones could go for sale on market.
As for iPhone and Samsung, though still strong in market, they are facing with challenges from their own and Chinese original brands, and yet their market percentage has been declining all the time.
Above all, Chinese market is no longer as easy as a pie since it has experienced a burst since 2010, and up to now, some smartphone manufacturers had died like Big Cola, and most of them are experiencing severe competition like Huawei, Xiaomi, Meizu, OPPO, Vivo, Lenovo and ZTE, and many companies are developing overseas markets like India and Middle East areas.