With 90% already owning a smartphone in China, a slow down in shipments starts

With 90% already owning a smartphone in China, a slow down in shipments starts
With 90% of the Chinese population already owning a smartphone, a slowdown in the country has started. The largest smartphone market in the world saw shipments decline in the first quarter for the first time in six years. The data, released by International Data Corp., showed 4.3% fewer smartphone shipments during the January through March period when compared to the prior year.

Despite the slowdown, a number of new models are being offered by Chinese manufacturers like Huawei, ZTE and Xiaomi. The manufacturers in the country have been focusing on top-shelf and entry-level models. This was pointed out by Charles Lin, chief financial officer of Pegatron Corp. who says that business is getting tough for those who focus on the middle of the Chinese smartphone market. Pegatron is a contract manufacturer that assembles handsets for Apple and others.


Speaking of Apple, the company now sells more phones in China than in the U.S.. During the first quarter, the company became the top smartphone manufacturer in China, surpassing upstart domestic firm Xiaomi. Apple's chief rival Samsung dropped to fourth place in China during the opening three month period of the year. But Samsung has high hopes for its new flagship phones. A statement released by the company notes that the majority of China's 885 million smartphone users are employing mid and low-range devices. "This leaves plenty of room for upgrades to high-end phones as China’s market matures," said the spokesman.

source: WSJ

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24 Comments

1. waddup121 unregistered

Gotta like china!

2. CAMBODIANPATRIOT

Posts: 226; Member since: May 10, 2015

China is the world's biggest market for Apple. Android slum is doomed.

3. fyah_king unregistered

Yep, dem Asians love anything Americans.lol

4. CAMBODIANPATRIOT

Posts: 226; Member since: May 10, 2015

Dignity and confidence are what people looking for. Android never stands for that.

9. dimas

Posts: 3373; Member since: Jul 22, 2014

Look guys, somebody's proclaiming patriotic idealism on Apple here. Somebody's a monopoly lover here.

14. vergil9

Posts: 517; Member since: Apr 06, 2015

Are you by any chance related to AMERICANPATRIOT? Or are you the same person? I can see the similarity in the intelligence level.

26. andynaija

Posts: 1259; Member since: Sep 08, 2012

I instantly thought the same thing too when I saw that username.

5. quintessential

Posts: 86; Member since: Mar 11, 2015

Not surprising to see that. With cheap Droids flooding the Chinese market, the only way to stand out from the crowd would be the high-tier models that are less within reach from the masses. And who else besides Apple can provide that all-round experience? Prefer a high-end Samsung Galaxy S6/Edge? Sure, but not as many are willing to pay top-dollar for a phone that runs an OS which is available even on the cheapest phones. In the view of the Chinese, the difference between Google & Apple is, the former treats users like digits. Just digits for mass adoption to boost their advertising model, and your experience is the least of Google's concerns. Which is why firmware upgrades are thrown to the manufacturer's hands and are all over the place. Well, that's what you get for paying cheap, apparently. So we can't complain much. Whereas for Apple, iOS is something like an 'exclusive members-only' experience. And people who pay high prices for Apple's devices consider it a form of 'entry-ticket' to this experience. Your upgrades are taken care of, apps are well-regulated and tested before given the green light. The result is a seamless experience. So, is there any surprise why the Chinese adore Apple? Not at all.

8. ibend

Posts: 6747; Member since: Sep 30, 2014

they have iPhone clone everywhere, so holding an iPhone is common there

12. dimas

Posts: 3373; Member since: Jul 22, 2014

That same old stupid Apple experience reasoning again? Does unboxing apple products give you orgasmic feeling? Apple and Android, both have their own flaws. And Chinese people own both of them. Ye ol' god Apple made you think like they're the perfect company who can give you everything. Use your brain, company's goal is to get people's money and you're not doing yourself a favor for preaching like they're the only thing planet earth needs.

10. ibend

Posts: 6747; Member since: Sep 30, 2014

and thats a reason why next-gen iPhone will fail :-/

11. Arthurhkt

Posts: 723; Member since: Apr 19, 2012

Well, this is a business cycle, same as the Europe and US market before China, they had almost reach their peak, i believe the next market would be the Indian's(India).

13. dimas

Posts: 3373; Member since: Jul 22, 2014

True. Saturation have been with this countries for the past 2 years and that's where the pressure comes for phone manufacturers to create more innovative products just to be seen as valuable.

17. livyatan

Posts: 867; Member since: Jun 19, 2013

PA, i haven't even checked your claim about the supposed 90% but my common sense is telling me it is utterly ridiculous. That would be by far the highest smartphone adoption rate out of any nation, including your United States!!

20. gaming64 unregistered

Half of that 90% are either using cheap, old, or stolen smartphones

21. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

You're just butthurt to see less than 70% of American using smartphone

25. gaming64 unregistered

Sorry proud Chines guy. I'm sorry that you got butthurt because of my comment. Go back to your country full of piracy and fraud.

22. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

butthurt westerners pissing so hard for this article, we're proud of offering a smartphone cheaper than your dated features phone. that's what you get from the dumb patents and sh*tty copyright. while our rural area enjoying wechat and weibo on a big screen bargain advanced gadget No to mention more people here own high end iphone 6 and 6 plus, and you westerners still stuck at iphone 4s and iphone 5. butthurt gonna butthurt

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