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Smartphone Shipments in China to Reach 140 Mln in 2012

Sina Tech, 6/27/12

Taiwan-based Digitimes Research reported recently that Mainland Chinese smartphone shipments will increase to 140 mln units this year, with Samsung and Apple accounting for a combined 40% of the total. Domestic manufacturers Huawei, ZTE (0763.HK; 000063.SZ), Lenovo (0992.HK), and Yulong Computer Telecommunication (Coolpad), a subsidiary of China Wireless Technologies (2369.HK), will divide another 40% of the total amongst themselves, leaving little market space for other brands. Huawei and ZTE both plan to develop their markets by introducing mid-range and high-end handset products, a move that will further lower the companies' shipments of low-end products. While their smartphone shipments have increased, the companies' market shares have declined: Huawei's market share fell to 12% this year from 16% in 2011, while ZTE's share declined from 11% to 9%. Lenovo and Coolpad will ship 12 mln and 11.1 mln smartphones this year, respectively. Lenovo's close relationship with Taiwanese fabless semiconductor company MediaTek (MTK) enables it to enjoy priority on shipments, helping the company in its quest to enter the low-priced handset market. Coolpad, meanwhile, has been swift in its transition to smartphones, with smartphones to account for more than 70% of its shipments in 2012.

Keywords: market size Lenovo Samsung Yulong handset smartphone wireless 000063.SZ 0763.HK Huawei ZTE market share Apple Coolpad MediaTek China Wireless 0992.HK 2369.HK handset chip

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