Gartner Research

Market Trends: Chip Suppliers Must Adapt to Changing Dynamics in China's Smartphone Market

Published: 25 January 2016

ID: G00295445

Analyst(s): CK Lu , Roger Sheng

Summary

China's smartphone market dynamics is affected by the consolidation of existing OEMs and emerging brands. Chip suppliers should have real-time localized strategies to react to the highly dynamic market situations, as well as to achieve market share and profits.

Table Of Contents

Introduction

Market Trend

  • Chip Vendors Must Understand Chinese Carriers' Mutable Policies
    • Hardware Subsidization on Entry-Level Smartphones Will Expand 4G Subscriber Base
    • Compatibility of 3G/4G Technologies Will Require That General Platforms Support All Networks
  • Internet Companies Continue to Invest in the Smartphone Hardware Business to Expand Content and Service User Bases
    • Customized OSs With Service Aggregation Will Be Emphasized as Key Strategy for Internet Companies to Invest in Hardware Devices
    • Content and Service Bundled in Hardware Cost Will Stimulate Price Competition
  • Sophisticated Consumers Are More Focused on Brand, Design, Experience and Related Service Than Price
    • New Technologies or New Chipsets for Smartphones Have Faster Adoption Growth in China
  • Established OEMs Tend to Develop In-House More Chips for Their Smartphone Use

Contrarian View

  • If Global Smartphone OEMs Can Win the Market Share Competition From Chinese Competitors, Chipset Vendors Could Shift Focus

Vendors to Watch

  • Qualcomm
  • MediaTek
  • Spreadtrum Communications
  • HiSilicon Technologies

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