Chinese Mobile Users Opt for Smarter Smartphones

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Chinese SmartphonesChinese smartphones are top news as the battle for the hearts and minds of Chinese mobile users continues to gain momentum. With China population numbers chasing 1.5 billion, everybody wants one.

Apple Inc. and Samsung Group are at the top of the list of foreigners demanding their slice of action.

Behind the scenes, domestic companies primarily Huawei and Xiaomi still hold onto 70% of sales of Chinese smartphones.

Chinese Smartphones on the March

Spokesperson for the Chinese Ministry of Industry and Information Technology Zhang Feng believes this is partly “a reflection of China’s efforts to upgrade its manufacturing sector” in the face of increasingly aggressive western companies tapping Asian potential as their own markets saturate. The question is, are Chinese mobiles better, is the population more loyal to brand China, or is there another dynamic causing this?

Huge Local Growth Confirmed

During the first two quarters of 2015, China’s smartphone shipments amounted to 208 million units (7.5 percent up year on year). According to information released by the Ministry of Commerce, Huawei Technologies Co., Lenovo Group and Xiaomi Inc. each enjoyed approximately 30% year on year growth.

Market Sophistication Pitched Right

Zhu Dalin, analyst with IT research firm Analysys International believes that “domestic brands dominate China’s low-end and mid-range market due to their improved product quality and price advantages.” This may be because many Chinese mobile users are first generation owners and do not see the need for greater sophistication.

The Emerging Technology Difference

The preference for slightly dumber Chinese smartphones may be an echo of the Chinese Communist Party’s injunction that officials content themselves with less extravagant cars. China is a nation on the move but with a stammering economy, while western lifestyles continue from peak to peak. This suggests a new way of dealing either way across the border in Chinese smartphones.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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