Skip to main content

The Smart Connected Device Market Outlook for China

During 2014, China will remain one of the leading high-growth markets for digital technology. The Chinese Smart Connected Device (SCD) market grew by 45 percent in the third quarter of 2013, according to the latest market study by IDC.

However, segment growth was mixed. The market growth rate of smartphones was 64 percent, media tablets were at 77 percent -- but, in contrast, PCs declined by -12 percent.

IDC's Worldwide Quarterly Smart Connected Device Tracker provides an integrated view of three important digital technology markets: Personal computers (notebooks and desktops), smartphones, and media tablets. According to the IDC study findings, overall 2013 saw fast growth for the SCD market in China.

"2013 was a game changing year. The consumer SCD install base reached 780 million at the end of 2013, tripling the number of two years ago," said Kitty Fok, managing director at IDC China.

In the future, the China SCD market is going to move from an explosive growth phase into a more matured development phase. But the changes on product, market, application and technology will not slow down.

IDC also predicts that by the end of 2017, the total consumer SCD install base will reach 1.2 billion, while that of all SCD will reach 1.4 billion units.

IDC's Predictions and Online Poll Results are as follows:

  • The Chinese SCD market will grow by 17 percent and the PC market will start to recover with the annual growth rate of -1.4 percent during 2014. (online poll support: 92 percent).
  • A total of 130 million 4G smartphones will be shipped out to the market in 2014. (online poll support: 61 percent).
  • The ecosystem of domestic IT vendors will continue to improve. (online poll support: 89 percent).
  • The Chinese rural market will see the penetrated deployment of smart connected devices in 2014. (online poll support: 85 percent).
  • Device screens will increase in size as a whole. (online poll support: 94 percent).
  • The percentage of tablets with call function will account for 35 percent of the total tablet shipment. (online poll support: 67 percent).
  • The percentage of smartphones embedded with near-field communication (NFC) technology will account for 15 percent of the total shipment. (online poll support: 77 percent).
  • The battle to seize the living room device market will get started. (online poll support: 89 percent).
  • The tier 1-3 markets will experience growing consumption and tier 4-6 markets will see dropping prices. (online poll support: 96 percent).
  • Channel inventory will be reduced to a reasonable level during the third and fourth quarters of 2014; the percentage of online channel and telecom operator's package bundle will continue to increase. (online poll support: 95 percent).

As for channel development in China, it's expected that more traditional channels will launch their own online selling platforms and thus the online and offline channels will be integrated. The telecom operators are now increasing their sales targets on bundling sales, thereby increasing their influence.

After seeing fast growth of the smart connected devices and aggressive sales targets set by the manufacturers, the channel's excess inventory in 2013 became a problem. The inventories of PC, smartphone and tablet have already reached unreasonable levels.

According to IDC's assessment, it will take around two to three quarters in 2014 before pressure is discharged from the smart connected device channel's excess inventory challenges.

Popular posts from this blog

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202