Gartner Research

Market Trends: Chinese Smartphone OEMs Keep Growing Despite Domestic Market Saturation

Published: 23 December 2013

ID: G00259414

Analyst(s): Jon Erensen , Roger Sheng

Summary

China's smartphone market is becoming saturated after years of booming demand. In response, local smartphone OEMs must focus more on premium devices for replacement buyers. More importantly, they must expand abroad, which requires them to build strong international brands.

Table Of Contents

Introduction

Market Trend

  • Chinese OEMs Will Produce More Premium Smartphones
  • 4G LTE Smartphone Demand Will Drive the Next Wave of Chinese OEMs' Growth
  • Chipset Vendors Need to Prepare Road Maps That Match Chinese OEMs' Characteristics
  • Chinese OEMs Have Changed Focus to Aggressively Build Brand
  • Focus on Product Experience, Innovative Design and Marketing Activities
  • Development of China Local Semiconductors and Related Ecosystems Will Increase the Competitiveness of Chinese OEMs
  • The Hardware Components Ecosystem Will Benefit From the Vertically Integrated Local Supply Chain
  • Software Ecosystem Development May Help Chinese OEMs Reduce Their Dependence on Google
  • Outsourced Design and Manufacturing Services Provide Many Options for Cost and Quality
  • More Chinese OEMs Are Aggressively Exporting to Overseas Markets
  • Local Production Capabilities and Supply Chain Management Will Be Important for the Acquisition of Overseas Business

Contrarian View

  • If Global Brands Move Aggressively Into the Sub-$200 Segment, the Expansion of Chinese Smartphone OEMs Will Be Limited

Vendors to Watch

  • MediaTek
  • Qualcomm
  • Spreadtrum Communications, Marvell Technology Group and Others

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