Skip to main content

China is Now the Leading Market for Smartphones

End-user demand and a desire for lower-priced smartphones will make China (PRC) the largest market for smartphones this year, overtaking the United States as the global leader in smartphone shipments.

According to the latest market study by International Data Corporation (IDC), China will account for 26.5 percent of all smartphone shipments in 2012 -- that's compared to 17.8 percent for the United States.

"Looking ahead, the PRC smartphone market will continue to be lifted by the sub-$200 Android segment," said Wong Teck-Zhung, senior market analyst at IDC Asia-Pacific.

Near-term prices in the low-end segment will come down to $100 and below as competition for market share intensifies among the primary smartphone vendors. Carrier-subsidized and customized handsets from domestic vendors will further support the migration to smartphones and boost shipments.

Looking ahead to the later years in the forecast, the move to 4G networks will be another growth catalyst.

"Regionally, we expect smartphone demand to flow down to lower-tier cities," added James Yan, senior market analyst at IDC China.

After going through a period of sustained high growth, top-tier cities are likely to see decelerating smartphone growth rates. In contrast, secondary cities are expected to experience accelerated smartphone growth, with strong demand for low-cost models as well as high-end models, which are desired as status symbols.

IDC belives that the fact that China will overtake the United States in smartphone shipments does not mean that the U.S. smartphone market is grinding to a halt.

Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as device upgrade opportunities.

In addition to China and the United States, several other countries will emerge as key markets for smartphone shipment volume over the next five years.

High-growth countries such as Brazil and Russia will become some of the most hotly contested markets as mobile device manufacturers seek to capture new customers and market share.

Popular posts from this blog

The AI Application Integration Challenge

Artificial intelligence (AI) has rapidly become the defining force in business technology development, but integrating AI into applications remains a formidable challenge. According to a recent Gartner survey, 77 percent of engineering leaders identify AI integration in apps as a major hurdle for their organizations. As demand for AI-powered solutions accelerates across every industry, understanding the tools, the barriers, and the opportunities is essential for business and technology leaders seeking to evolve. The Gartner survey highlights a key trend: while AI’s potential is widely recognized, the path to useful integration is anything but straightforward. IT leaders cite complexities in embedding AI models into existing software, managing data pipelines, ensuring security, and maintaining compliance as persistent obstacles. These challenges are compounded by a shortage of skilled AI engineers and the rapid evolution of AI technologies, which can outpace organizational readiness and...