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China's smartphone market to reach 1.13 billion users in 2012

Posted: 06 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:Chinese smartphone market? market growth? 2012 market outlook?

The handset market in China has exhibited strong growth, with the total number of mobile users in the country reaching 980 million people. According to figures from the Ministry of Industry and Information Technology (MIIT), there has been an increase of 130 million users over the 2010 figure.

Digitimes Research has estimated that mobile user numbers would reach 1.13 billion in 2012. The research company has estimated that the China handset market reached some 390 million units in 2011, representing 16 percent growth on 2010. The market is likely to grow to 430 million units in 2012, representing further growth of 9 percent. Thanks to the expansion of 3G service coverage and further falls in budget smartphone prices, the share of the handset market accounted for by smartphones is likely to reach 32 percent or around 143 million units, 70 percent of which will be Android handsets.

The research firm believes that market share rankings for the China smartphone market will be drastically different in 2012. Samsung and Apple are projected to take the top two places. On the other hand, the big four China-based brands; Huawei, ZTE, Lenovo and Coolpad, will take third to sixth places. With Nokia is projected to drop to seventh, these seven firms will collectively account for 85 percent of shipments.

Other brands hoping to seize a share of the market will essentially be competing for a potential market of just 15 percent of overall shipments or around 21 million handsets. Given such a situation, it is projected that many of China's best known smaller brands such as Xiaomi, TCL, Gionee, Tianyu, Oppo and BBK will see shipments of no more than a few million handsets.

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