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Chinese smartphone makers carve up local market

by on28 August 2015

Whatever Apple claim

While Apple is claiming it is cleaning up in China, some figures in from the Far East suggest that the market has been carved up by local suppliers.

 Digitimes quoting its normal sources said that Chinese-based vendors have a huge competitive advantage from low entry to high end models and are expelling the nasty imperialist westerners from the market.

ZTE, Huawei, Coolpad, Lenovo, Xiaomi and TCL Communication Technology were seen as market killers at the low end of the market. Meizu, Vivo and Oppo had launched some mid-range and high-end models.

Lenovo, Xiaomi and Huawei lead in sales of low priced smartphones. Vivo and Oppo have both reached a market share of about 30 per cent for mid-range models. Huawei has a third of the high-end due to booming sales of its Mate 7.

Apple is the only foreign vendor that has maintained a significant market share due to steadily good sales for the iPhone 6 and iPhone 6 plus, while Samsung, LG Electronics, Sony Mobile Communications and HTC have seen decreasing market shares.

But the writing is one the wall even there. The Chinese have worked out that it is not a good idea to waste too much time and money on a big range of smartphones. Lenovo has halved the number of new models launched in 2015 as compared to a year earlier and will limit the new models released per year to 10-12.
Meanwhile, ZTE has reduced the number of new phones by half so far in 2015, and Coolpad has cut the number of entry-level models by a third.

The streamlining process has also forced handset vendors to cooperate more closely with large-scale ODMs, while reducing their orders to small-scale OEMs. It has also cut costs, making Chinese phones much more attractive than anything with an Apple label.
It would be a very brave person who thought that a non-Chinese company could rule long in China. Cook is being a little brave suggesting it.

Last modified on 28 August 2015
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