Gartner Research

Driving Success in the Smartphone Replacement Market, China and the U.S.

Published: 09 May 2016

ID: G00301727

Analyst(s): CK Lu , Luis Anavitarte, David Glenn, Tuong Nguyen

Summary

China and the U.S. together accounted for 45% of $325 billion in global mobile phone revenue in 2015. Marketing managers should be aware of cultural, channel and income differences that influence consumers' purchase decisions.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Chinese consumers rely heavily on their smartphones compared with those in the U.S., which challenges smartphone marketing managers to provide an appropriate smartphone experience across different regions
  • The U.S. is still heavily controlled by CSPs, while China is returning to a retail focus, which makes channel strategy more complicated for smartphone marketing managers to plan the right product for the right channel
  • The emerging middle class in China is moving up smartphone tiers, which creates the dilemma that smartphone marketing managers have to increase brand premium while maintaining hardware price

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