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10 forecasts for China's smart connected devices

Posted: 05 Feb 2015 ?? ?Print Version ?Bookmark and Share

Keywords:IDC? smart connected device? PC? tablet? smartphone?

3. Tablet markets in lower tier cities will face great challenges

After three years of high growth, the tablet market returned to rationality, with growth rate of shipments declined from 86.9 per cent in 2013 to 7.3 per cent in 2014. Reasons causing this decline are various. Wherein, an important one is the rapid growth of phablets (i.e., smartphones with the screen size of 5.5in-6.99in); with the constant decline in price, phablets will become more attractive for consumers in the 4th- to 6th-tier cities. At the same time, eager to prevent the rapid industry decrease, tablet manufacturers will invest more in product R&D for first- to third-tier cities where there are many commercial and smart home target customers. As a result, the 4th- to 6th-tier markets will undoubtedly face a greater challenge. Manufacturers and channels have to think about how to survive in the markets full of low-price strategies.

4. Smartphone shipment in Western China will exceed 80 million units

Western China has long been regarded as a promising SCD market, mainly because of the national policy support and increasing urbanisation in that region. Urbanisation, a vital impetus for Chinese economic growth, will continue to play an important role. Smartphone market will face exciting chances for accelerating penetration and popularisation in the rapid urbanisation development. IDC predicts that smartphone market in Western China will grow by double digits in the next 1-2 years.

5. SCD shipments in Central China will keep on growing by double digits

Central China, neighbouring the Pearl River Delta in the south, the Yangtze River Delta in the east and the rapidly developing Great West, holds an advantageous position in the national and regional development layout. This region will see the high-speed increase of SCD popularisation that comes with urbanisation, as well as recovery of the PC market resulting from the upgrading demand in the developed cities. IDC predicts that in 2015, SCD market in Central China will keep on growing by double digits.

6. Market development of Northern China enters the "New Normal"

With respect to population, economic aggregate and scale of the SCD market, North China is the largest region. The development trend of this region in the future will be basically consistent with the overall market of China. As the industrial base of important equipment manufacturing industry and energy raw material, Northern China has been facing significant challenges. While industrial and investment growth declined severely, and consumption has replaced investment as the main engine to drive GDP growth. Scientific and technological innovation have become the new growth point. All of these factors lead to what IDC calls the "New Normal" stage, ushering the SCD market of Northern China into a stable development stage.

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