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China's smartphone shipments to experience 6% YoY growth

Posted: 21 Jun 2013 ?? ?Print Version ?Bookmark and Share

Keywords:smartphone? mobile internet? 4G?

According to the most recent forecast from IDC, China's smartphone shipments will increase sharply this year. In 2017, smartphone shipments will surpass 460 million units to reach a market size of $117.8 billion, added the market analytics firm.

IDC research indicates that the development of smartphones will inevitably drive the innovation of the entire industry chain, further promoting the perfection of mobile communications and mobile internet ecosystem.

James Yan, senior analyst of IDC China, who is responsible for mobile phone market research, predicted that the development trends of China's mobile phone industry chain will manifest in the following aspects in the next five years:

By 2017, 4G mobile phone shipments will outnumber 3G mobile phone shipments. IDC added that, with an increasing share of upstream 4G chip vendors engaging in mass production, the push by China's three major operators, and the support from terminal vendors, the shipments of 4G mobile phones will outnumber those of 3G mobile phones in 2017.That will further promote the development of the entire mobile communications and mobile internet industry.

By the end of 2013, the market share of smartphones with screens 5in and above will exceed 20 per cent. Influenced by the operators' demands for customised product specifications (large screen over 5in, dual-core/quad-core) and the positive effect of Samsung's Galaxy S and Note series on the growth of large-screen mobile phone market, large-screen mobile phones are gradually becoming acceptable to consumers. As a result, mobile phone vendors quickly responded with the release of a large amount of smartphones with 5in above screens. IDC data noted that, as of 1Q13, the market share of 5in above smartphones reached 7.5 per cent, up 74 per cent over the previous quarter. IDC forecasted that this figure will exceed 20 per cent by the end of 2013.

Large domestic vendors will acquire upstream and downstream businesses to close gaps in supply chain. Domestic brands, which have encountered many bottlenecks in developing high-end products, such as product patent subjected to limits and core components controlled by large foreign vendors, need to urgently integrate the upstream and downstream of the industry chain or consider merger and acquisition (M&A) strategies. IDC expected that many M&As in relation to the industry chain will emerge in the next two years.

Vendors will prepare themselves for mobile internet and communications to enhance stickiness or vie for mobile internet entrance. It is difficult for mobile phone vendors to differentiate by simply upgrading hardware for higher premium. Getting ready for mobile internet services such as app store, voice input, mobile browser, mobile desktop and cloud service, has become an inevitable competition strategy for vendors to enhance stickiness and vie for mobile internet entrance in the future.

Efforts will be made to develop wearable terminals and mobile services such as somatosensory live action. Along with the development of flexible materials and sensing devices, mobile phone peripherals and wearable terminals will enter the development stage. Meanwhile, industrial applications (including health care and education) and consumer services (such as life tools, gaming and shopping) will attract more attention.

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