Looking at smartphone sales in the local China market, under the influence of stagnating sales of international brands, a lack of differentiating features in high-end and high-cost/performance ratio products marketed by China-based makers, and ultra-low-cost 4G phones yet to be launched, the third quarter China smartphone market only saw heightened demand during summer promotion periods, and shipments reached 90.6 million units, down three million units, or 3.1% on quarter.
A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be stimulated.
This report is divided into two sections; the first covers the China smartphone market, including shipments from international players and China-based players. The second section covers the China smartphone industry and covers shipments from local makers in the domestic market and export shipments.
China first-tier smartphone players - Lenovo, Huawei, CoolPad and ZTE - started releasing new smartphones in the fourth quarter of 2013 because their entry-level model inventories, accumulated over the first three quarters of 2013, were mostly digested by October 2013. The new models' larger screen sizes and better application processors also increased China consumers' demand.