Chinese smart phone brands to take over half of global market share

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Chinese smart phone makers are expected to take 54 percent of the global market share this year through continuous overseas expansion, according to the latest research by TrendForce, a global provider of market intelligence on technology industries.

Chinese brands achieved rapid growth in the past few years, and have even broken the market pattern which was previously led by South Korean and American manufacturers, said analyst Yao Jiaxiang from TrendForce.

One of every three smart phones sold today comes from China. This conclusion was reached by a market survey organization based on the shipments of major smart phone makers between 2015 and 2017. The organization said that nine of the top 12 smart phone manufacturers were Chinese.

Chinese smart phones accounted for 42 to 45 percent of the global market share in 2017, according to major data research companies. However, the figure exceeded 50 percent in the first half of 2018 thanks to the overseas expansion of Chinese companies. Their shares were especially high in India, Russia and Europe.

One Plus, an emerging Chinese phone maker, achieved a 40-percent share in India’s high-end smart phone market, followed by Samsung who secured 35 percent. Apple was in third place with only 14 percent of the market.

However, this was just the beginning for Chinese phone makers regarding their overseas expansion. Rajeev Nair with Strategy Analytics said that in addition to India, the performance of Chinese suppliers in the whole of Southeast Asia was remarkable in the first quarter of 2018. They accounted for over a third of the region’s market share while the figure was just less than a quarter a year ago.

Yao attributed the success of the Chinese brands to their pricing strategies that attach high importance to cost-efficiency.

However, focusing only on pricing strategies will not be enough to help Chinese enterprises in the global market long-term.

The next phase of competition is a battle among the strongest, so it is a test for enterprises’ capability in globalization, said Zhao Ming, president of Honor, the leading smart phone e-brand under Chinese tech giant Huawei.

“Those who make better products and comply with global business rules will go further, and those who go further finally win the game,” Zhao noted.