Tag: smartphone market

Smartphone market may be slowing overall, but not in emerging areas

A report from IDC has showed that even as it matures in some countries, others are still taking off.

The IDC has now released its report on the growth of the smartphone market for 2014 and it has shown that while mature marketplaces are forecasted to grow by only 4.9 percent, emerging regions are expected to keep up a tremendous rate of 32.4 percent.

Some of the regions of the world are experiencing faster growth than the average reported by IDC.

According to the report, the Indian smartphone market saw a massive 300 percent growth rate in 2013. As only 10 percent of the over 700 million users of cell phones had smartphones at that time, it was only natural that the growth rate be exceptionally high. By the first quarter of this year, the penetration rate of these mobile devices had already reached a much higher 29 percent.

In emerging countries, the dynamics of the growth of the smartphone market are different than in mature regions.

For instance, many emerging marketplaces do not have a broad scale fixed line infrastructure. Therefore, this means that it provides an ecosystem that is much more favorable for the use of mobile broadband technologies for the delivery of high speed internet connections than is the case in mature markets, where that infrastructure is considerably better established.Smartphone market - slow

The demand within emerging regions is, therefore, driving growth in both smartphone shipments and in mobile broadband subscriptions. Two very large and yet highly different examples of this occurrence are going on in India and in China.

In China, the China Internet Network Information Center (CNNIC) reported that at the end of 2012, there was a 74.5 percent growth in mobile internet users to the most recent figure, which is 81 percent. Clearly, this is a notably higher growth rate and the CNNIC is calling the smartphones the primary driving force for internet use in the country.

On the other hand, in India, Mary Meeker from Kleiner Perkins, indicated in the report called the 2014 Internet Trends that while smartphone use is tremendous, revenues are very large, and the opportunity is considerable, companies are still seeing tiny margins. At the moment, only 4 percent of the budgets of advertisers in the country is being spent on advertising in the smartphone market.

Smartphone market in China is now led by Xiaomi

The company has experienced massive growth in the country, skyrocketing its size and share.

The founder of Xiaomi, Lei Jun, has already announced that the massive growth that his company has seen in the Chinese smartphone market has not only pushed it to the top in China, but it has also placed it in the fifth spot among the largest handset makers in the world.

This was accomplished despite the fact that the company was still relatively obscure only one year ago.

Now, Xiaomi has taken the lead in cell phone sales in China. This is a massive accomplishment, considering that the country represents the largest smartphone market on the entire globe. A technology research report that was recently published by Canalys underscored the tremendous growth that the company has been making. It has managed to jet right past other giants within the space, such as Lenovo and even Samsung, in order to take its crown in the country.

Due to the sheer size of the Chinese smartphone market, it has secured Xiaomi as the fifth largest cell phone maker in the world.

Smartphone Market - Xiaomi leadingThe Canalys report went on to say that throughout the second quarter of 2014, Xiaomi managed to ship a tremendous 15 million smartphones within China. During the same quarter of 2013, that figure had been only 4.4 million. To compare, the report showed that Samsung sold 13.2 million cell phones within the country during that quarter, which was a decline from the 15.5 million that it had sold during the same period of time last year.

As a whole, there was a 240 percent year over year growth experienced by Xiaomi during the second quarter. It currently holds an estimated 14 percent of the cell phone device market in China.

According to Chris Jones at Canalys, the company managed to make this tremendous progress within this mobile device sector because it took on an entirely different strategy to its competition. The majority of manufacturers in the country’s smartphone market focus on price when it comes to their competition. That said, Xiaomi placed its focus on its marketing, branding and sales strategies.