70 percent of phones sold in China are Chinese-branded, Samsung and Apple losing out

Last updated on Dec 30, 2012

Posted on Dec 30, 2012

The smartphones sales in China is soaring.  Specifically the Android based phones.  But there is a catch!  70 percent of phones sold in China are Chinese-branded.  China is increasingly turning away from Samsung and Apple, and instead embracing very low-cost Android phones by Chinese companies such as Xiaomi, HUAWEI or ZTE.

The total mobile phones sales in November were 24.59 million, out of which 11.65 mn were through telecom operators.

One of the reason why China-made mobile phones take more domestic market share is the price. Many kinds of domestic mobile phone were sold very cheap such as Xiaomi, HUAWEI or ZTE. In China, many consumers especially people from smaller towns or countryside like to look for smartphones that cost 1,500 yuan ($240) or less. They are opting for local brands over international counterparts. Samsung, which has a market share of 15.5 percent, remained the champion in China’s mobile phone market in November, and it was followed by Lenovo, Coolpad, Huawei, ZTE, Nokia, Gionee, K-Touch, Apple and HTC. (6 China brands, 1 Taiwanese brand and 3 global brands). (link)

This is surely a problem for Apple, as it loses out not only in terms of phone market share but also the OS share.  Samsung will also be impacted heavily, although it seems that amongst non-Chinese manufacturers, Samsung stands tallest.

In all this, Google stands to gain handsomely, as it is only concerned with its footprint, which provides it the vehicle for its ad-based revenues.

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