Gartner Research

Market Trends: China's Internet Giants Reveal Influential Investment in Hardware to Control the Ecosystem of Smartphones and IoT Devices

Published: 20 April 2015

ID: G00273552

Analyst(s): Roger Sheng , CK Lu , Jane Zhang

Summary

China's Internet giants are increasingly investing in a hardware ecosystem for control of Internet portals on various connected devices. Strategy planners in semiconductor vendors should seek to create a direct and successful partnership with key Internet giants for lucrative business opportunities.

Table Of Contents

Introduction

Market Trend

  • The Rising Mobile Ecosystem of China's Internet Giants Will Stimulate Strategic Alliances
  • Competition Will Expand to Emerging Markets by Collaborating or Investing, and Exporting Manufacturers and Foreign Local Brands
  • Mobile Internet Will Provide the Key Initiative for Connecting IoT Devices in China
  • The Latest Strategic Partnerships Between Internet Companies and Hardware OEMs Will Help Decrease the Price of Smartphones and IoT Devices
    • Established Hardware OEMs Will Shift Business Focus From Hardware-Centric to Customer-Service-Centric
  • Semiconductor Vendors Will Enhance Direct Partnerships With Major Chinese Internet Companies
    • Semiconductor Vendors' Differentiated Platform Capabilities Will Help Its Service Partners Protect Their Innovations

Contrarian View

  • Internet Companies Must Manage Supply Chain, Manufacturing and Distribution Effectively

Vendors to Watch

  • Alibaba
  • Baidu
  • Qihoo 360
  • Tencent
  • Xiaomi

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